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                                               FEDERAL COMMUNICATIONS COMMISSION
                    Washington, D.C.  20554
                                
                        August 19, 1987
                                
                                             In reply refer to:
                                                   RAO Letter 8

Responsible Accounting Officers

Accounting for the tax timing difference associated with IRS Summary Assessment

     In recent weeks, several companies have received permission, pursuant to the
provisions of Section 31.176:2 of the Commission's rules, to normalize the tax timing
differences related to the payment of an IRS Summary Assessment recorded in Account 139,
Other deferred charges. These payments included an interest expense element which is
currently deductible for tax purposes. These companies intended to take a deduction for the
interest portion of the payment for tax return purposes, while the interest portion remains
recorded in Account 139 for book purposes.

     The purpose of this letter is to inform all reporting companies that we view the 
deduction of the interest portion of the disputed taxes as a tax timing difference as long as the
interest portion remains in Account 139 for book purposes, and to remind them that 
Part 31 of the Commission's rules requires tax timing differences to be flowed through in the
current period unless they have obtained permission under Section 31.176:2, to do otherwise.

     This letter is issued under Section 0.291 of the Commission's rules. Applications for
review under Section 1.115 of the Commission's rules must be filed within 30 days from the
date indicated above (See Section 1.4(b)(4) of the Commission's rules).

     If you have any questions contact the Chief of the Accounting Systems Branch at (202)
418-0810.

                                        Sincerely,

                                                                                Kenneth P. Moran,
                                        Acting Chief
                                        Accounting and Audits Division