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<PAGE> PAGE 4
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SIGNATURE LESLIE L. OGG
TITLE GENERAL COUNSEL
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> TAX-FREE HIGH YIELD PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 5078490354
<INVESTMENTS-AT-VALUE> 5298793350
<RECEIVABLES> 216003282
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5514796632
<PAYABLE-FOR-SECURITIES> 60767096
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 20129619
<TOTAL-LIABILITIES> 80896715
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
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<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 5433899917
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 376929579
<OTHER-INCOME> 0
<EXPENSES-NET> 26115283
<NET-INVESTMENT-INCOME> 350814296
<REALIZED-GAINS-CURRENT> (34314288)
<APPREC-INCREASE-CURRENT> (400370743)
<NET-CHANGE-FROM-OPS> (83870735)
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</TABLE>
Independent Auditors' Report on Internal Accounting Control
The Board of Directors and Shareholders
Tax Free Income Trust:
In planning and performing our audit of the financial statements
of Tax Free High Yield Portfolio (a portfolio within Tax
Free Income Trust) for the year ended November 30, 1999, we
considered its internal control, including control activities
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.
The management of Tax Free Income Trust 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 entity's objective of preparing financial
statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control,
errors or irregularities may occur and 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 one
or more of the internal control components 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 and its operation,
including controls for safeguarding securities, that we consider
to be a material weakness as defined above.
This report is intended solely for the information and use of
management, the Board of Trustees of Tax Free Income Trust,
and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these
specified parties.
KPMG LLP
Minneapolis, Minnesota
January 7, 2000
#108063 v01
EXHIBIT 77D
For TAX-FREE INCOME TRUST
Tax-Free High Yield Portfolio
At a Board of Directors' meeting held on September 8-9, 1999, the
following investment policy was eliminated:
Under normal market conditions, the Fund does not intend to commit
more than 5% of its total assets to when-issued securities or forward
commitments.
