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001 A000000 KEYSTONE TAX FREE INCOME FUND
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001 C000000 6173383200
002 A000000 200 BERKELEY STREET
002 B000000 BOSTON
002 C000000 MA
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022 A000001 EVEREN CLEARING CORP
022 C000001 8647
022 D000001 7350
022 A000002 WILLIAM SIMON MUNICIPAL
022 C000002 6339
022 D000002 8162
022 A000003 MERRILL LYNCH
022 C000003 4491
022 D000003 4643
022 A000004 GOLDMAN SACHS
022 B000004 13-510880
022 C000004 3338
022 D000004 3297
022 A000005 PAINE WEBBER
022 B000005 13-2638166
022 C000005 3300
022 D000005 3000
022 A000006 MORGAN STANLEY
022 C000006 4275
022 D000006 1689
022 A000007 JOHN HANCOCK
022 C000007 2950
022 D000007 2789
022 A000008 LEHMAN BROS
022 B000008 13-2518466
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022 D000008 4327
022 A000009 SEATTLE-NORTHWEST
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<PAGE> PAGE 2
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SIGNATURE KEVIN MORRISSEY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> KEYSTONE TAX FREE INCOME FUND CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-01-1994
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 134,274,310
<INVESTMENTS-AT-VALUE> 145,476,396
<RECEIVABLES> 2,919,958
<ASSETS-OTHER> 21,044
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 148,417,398
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 400,350
<TOTAL-LIABILITIES> 400,350
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 87,615,881
<SHARES-COMMON-STOCK> 9,370,675
<SHARES-COMMON-PRIOR> 10,719,229
<ACCUMULATED-NII-CURRENT> 92,003
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (4,090,501)
<ACCUM-APPREC-OR-DEPREC> 10,565,391
<NET-ASSETS> 94,182,774
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,271,765
<OTHER-INCOME> 0
<EXPENSES-NET> (1,133,646)
<NET-INVESTMENT-INCOME> 5,138,119
<REALIZED-GAINS-CURRENT> (495,315)
<APPREC-INCREASE-CURRENT> 11,884,780
<NET-CHANGE-FROM-OPS> 16,527,584
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5,113,059)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 224,063
<NUMBER-OF-SHARES-REDEEMED> (1,843,241)
<SHARES-REINVESTED> 270,624
<NET-CHANGE-IN-ASSETS> (1,508,583)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (29,573)
<OVERDIST-NET-GAINS-PRIOR> (3,554,619)
<GROSS-ADVISORY-FEES> (590,003)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (1,146,624)
<AVERAGE-NET-ASSETS> 96,031,701
<PER-SHARE-NAV-BEGIN> 8.93
<PER-SHARE-NII> 0.51
<PER-SHARE-GAIN-APPREC> 1.13
<PER-SHARE-DIVIDEND> (0.52)
<PER-SHARE-DISTRIBUTIONS> 0.00
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<PER-SHARE-NAV-END> 10.05
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 102
<NAME> KEYSTONE TAX FREE INCOME FUND CLASS B
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-01-1994
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 134,274,310
<INVESTMENTS-AT-VALUE> 145,476,396
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<TOTAL-LIABILITIES> 400,350
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<PAID-IN-CAPITAL-COMMON> 33,672,433
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<SHARES-COMMON-PRIOR> 3,251,836
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (169,764)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1,276,552)
<ACCUM-APPREC-OR-DEPREC> 1,222,409
<NET-ASSETS> 33,448,526
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,091,504
<OTHER-INCOME> 0
<EXPENSES-NET> (622,239)
<NET-INVESTMENT-INCOME> 1,469,265
<REALIZED-GAINS-CURRENT> (147,809)
<APPREC-INCREASE-CURRENT> 3,858,056
<NET-CHANGE-FROM-OPS> 5,179,513
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<DISTRIBUTIONS-OF-INCOME> (1,553,279)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 647,077
<NUMBER-OF-SHARES-REDEEMED> (625,195)
<SHARES-REINVESTED> 82,512
<NET-CHANGE-IN-ASSETS> 4,588,113
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (119,945)
<OVERDIST-NET-GAINS-PRIOR> (1,114,371)
<GROSS-ADVISORY-FEES> (196,944)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (626,903)
<AVERAGE-NET-ASSETS> 32,043,656
<PER-SHARE-NAV-BEGIN> 8.88
<PER-SHARE-NII> 0.44
<PER-SHARE-GAIN-APPREC> 1.11
<PER-SHARE-DIVIDEND> (0.46)
<PER-SHARE-DISTRIBUTIONS> 0.00
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 103
<NAME> KEYSTONE TAX FREE INCOME FUND CLASS C
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-01-1994
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 134,274,310
<INVESTMENTS-AT-VALUE> 145,476,396
<RECEIVABLES> 2,919,958
<ASSETS-OTHER> 21,044
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 148,417,398
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 400,350
<TOTAL-LIABILITIES> 400,350
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 22,512,368
<SHARES-COMMON-STOCK> 2,045,152
<SHARES-COMMON-PRIOR> 2,616,944
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (210,399)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1,330,507)
<ACCUM-APPREC-OR-DEPREC> (585,714)
<NET-ASSETS> 20,385,748
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,413,096
<OTHER-INCOME> 0
<EXPENSES-NET> (419,724)
<NET-INVESTMENT-INCOME> 993,371
<REALIZED-GAINS-CURRENT> (117,619)
<APPREC-INCREASE-CURRENT> 2,709,103
<NET-CHANGE-FROM-OPS> 3,584,855
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,040,876)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 338,010
<NUMBER-OF-SHARES-REDEEMED> (974,642)
<SHARES-REINVESTED> 64,840
<NET-CHANGE-IN-ASSETS> (2,843,966)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (183,955)
<OVERDIST-NET-GAINS-PRIOR> (1,204,035)
<GROSS-ADVISORY-FEES> (132,855)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (422,360)
<AVERAGE-NET-ASSETS> 21,629,605
<PER-SHARE-NAV-BEGIN> 8.88
<PER-SHARE-NII> 0.44
<PER-SHARE-GAIN-APPREC> 1.11
<PER-SHARE-DIVIDEND> (0.46)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.97
<EXPENSE-RATIO> 1.96
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone Tax Free Income Fund
In planning and performing our audit of the financial statements of Keystone
Tax Free Income Fund for the year ended November 30, 1995 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 Keystone Tax Free Income Fund 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 or
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 structure 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 the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
November 30, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
January 5, 1996
