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<PAGE> PAGE 2
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SIGNATURE STEVE KEANE
TITLE GENERAL COUNSEL
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 278002
<NAME> Federated Tax Free Trust
<SERIES>
<NUMBER>
<NAME>
<S> <C>
<PERIOD-TYPE> 12mos
<FISCAL-YEAR-END> Nov-30-1998
<PERIOD-END> Nov-30-1998
<INVESTMENTS-AT-COST> "517,577,858"
<INVESTMENTS-AT-VALUE> "517,577,858"
<RECEIVABLES> "3,940,706"
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> "122,866"
<TOTAL-ASSETS> "521,641,430"
<PAYABLE-FOR-SECURITIES> "2,540,000"
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> "1,214,759"
<TOTAL-LIABILITIES> "3,754,759"
<SENIOR-EQUITY> 0
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<SHARES-COMMON-STOCK> "517,905,619"
<SHARES-COMMON-PRIOR> "635,549,681"
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> "(11,089)"
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> "517,886,671"
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> "20,500,264"
<OTHER-INCOME> 0
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<NET-INVESTMENT-INCOME> "17,911,917"
<REALIZED-GAINS-CURRENT> "11,456"
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<NET-CHANGE-FROM-OPS> "17,923,373"
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<DISTRIBUTIONS-OF-INCOME> "(17,911,917)"
<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> "1,890,281,389"
<NUMBER-OF-SHARES-REDEEMED> "(2,009,346,623)"
<SHARES-REINVESTED> "1,421,172"
<NET-CHANGE-IN-ASSETS> "(117,632,606)"
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<ACCUMULATED-GAINS-PRIOR> "(22,545)"
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<GROSS-ADVISORY-FEES> "2,268,000"
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</TABLE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
FEDERATED TAX-FREE TRUST:
In planning and performing our audit of the financial statements of
Federated Tax-Free Trust for the year ended November 30, 1998 (on which
we have issued our report dated January 8, 1999), we considered its
internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of Federated Tax-Free Trust is responsible for
establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs of
internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management
with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition and that transactions
are executed in accordance with management's authorization and recorded
properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure,
errors and irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure that
might be material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness is a
condition in which the design or operation of the specific internal
control elements does not reduce to a relatively low level the risk that
errors or irregularities in amounts that would be material in relation
to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing
their assigned functions. However, we noted no matters involving
internal control, including procedures for safeguarding securities, that
we consider to be material weaknesses as defined above as of November
30, 1998.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission and is not intended to be and
should not be used by anyone other than these specified parties.
January 8, 1999