BOSTON - Eaton Vance Corp. has received private confirmation in a letter from the Internal Revenue Service that its spinoff of Investors Bank and Trust Co. will be tax free to Eaton Vance shareholders.

The Boston-based investment management firm announced plans earlier this year to spin off its 77.3% ownership in Investors in a distribution of shares to Eaton shareholders. The plan, which is still subject to state and federal regulatory approval, would free the bank from a 1987 federal law that restricts its asset growth to 7% per year because of Eaton's ownership of the bank.

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