The Tax Reform Act of 1986 will, most likely, have a severe impact on many segments of cotton production and processing. The act, signed into law on October 22, 1986, presents the most substantial change in tax law in recent history. It touches all facets of life both individual and corporate; and while analysis of the impact of the bill has shown some clear winners and losers, most corporate and private citizens are in the "wait and see" stage.