OVERVIEW OF THE PROPOSED REGULATIONS UNDER SECTION 7701


     These regulations explain that a trust that is created
primarily to finance the mandatory clean-up of an existing waste
site under environmental laws will be taxed as a trust rather
than as a partnership or corporation.
     Those required by law to clean up such a waste site may
create such a trust.
     The proposal would make these regulations final on the date
they are published as final regulation.  An additional
explanation and a full text of these regulations appears on pages
39903-39905 of the Federal Register of August 4, 1995.