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SIGNATURE KELLY O'NEILL
TITLE COMPLIANCE ADM.
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000353312
<NAME> IAA TRUST TAXABLE FIXED INCOME SERIES FUND, INC.
<SERIES>
<NUMBER> 3
<NAME> IAA TRUST LONG-TERM BOND SERIES
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> JUN-30-1998
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<INVESTMENTS-AT-VALUE> 38433864
<RECEIVABLES> 426872
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<OTHER-ITEMS-LIABILITIES> 65845
<TOTAL-LIABILITIES> 65845
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<SHARES-COMMON-PRIOR> 3279931
<ACCUMULATED-NII-CURRENT> 32099
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 443862
<OVERDISTRIBUTION-GAINS> 0
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</TABLE>
PriceWaterhouseCoopers LLP
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Directors of
the IAA Trust Company Mutual Funds:
In planning and performing our audit of the financial statements and
financial highlights of the IAA Trust Company Mutual Funds (comprising
respectively, IAA Truyst Growth Fund, Inc., IAA Trust Asset Allocation
Fund, Inc., IAA Trust Tax Exempt Bond Fund, Inc., and IAA Trust Taxable
Fixed Income Series Fund, Inc., which includes the IAA Trust Money Market
Series, IAA Trust Short Term Government Bond Series, and IAA Trust Long
Term Bond Series)("the Fund") for the year ended June 30, 1998, we
considered its internal control, including control activities safeguarding
securities, in order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and financail
highlights and to comply with the requirements of Form N-SAR, not to
provide assurance on the internal control structure.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related
costs of controls. Generally, controls that are relevant to an audit
pertain to the Fund's objective of preparing financial statements and
financial highlights for external purposes that are fairly presented
inconformity with generally accepted accounting principles. Those
controls include the safeguarding of assets against unaurhotized acquisition,
use or disposition.
Because of inherent limitations in any internal controls, errors or fraud
may occur and may not be detected. Also, projection of any evaluation of
internal control 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 would not necessarily disclose all
matters in the internal control 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 any specific internal control component does not reduce to a
relatively low level the risk that errors or fraud in amounts that would be
material in relation to the financial statements and financial highlights
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 the internal control, including
controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of June 30, 1998.
This report is intended solely for the information and use of management
of the Securities and Exchange Commission.
/s/PriceWaterhouseCoopers LLP
PriceWaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
July 31 , 1998
