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HOME SHOPPING TO BENEFIT FROM RECENT TAX RULING

 HOME SHOPPING TO BENEFIT FROM RECENT TAX RULING
 ST. PETERSBURG, Fla., April 15 /PRNewswire/ -- Home Shopping


Network, Inc. (NYSE: HSN) announced today that it will be among the beneficiaries of a recent decision of the U.S. Tax Court which allows a buyer of a television station to deduct the cost of acquiring a broadcast license. HSN is the fifth largest TV station group owner in the U.S. Home Shopping's subsidiary, HSN Communications, Inc., owns and operates 11 broadcast television stations across the United States, including New York, Chicago and Los Angeles.
 The tax court's decision arose from a case brought by Jefferson- Pilot Corp. against the Internal Revenue Service (IRS) over whether the purchase price allocated for Federal Communications Commission (FCC) licenses in the acquisition of three radio stations was covered by the tax law for the transfer of franchises. The court stated, "The taxpayer is entitled to amortize the portion of the purchase price attributable to the acquisition of the franchise rights."
 In July of 1986, Home Shopping initiated a program to broaden the viewership of its programming services by acquiring broadcast television stations in principal television markets through HSN Communications.
 During fiscal 1991, the IRS completed its examination of Home Shopping's federal income tax returns for fiscal years 1987 and 1986, the years during which the broadcast properties were acquired. The adjustments proposed by the IRS include the disallowance of Home Shopping's amortization of the purchase price of the broadcast properties attributable to the acquisition of FCC licenses. HSN has filed a formal protest with the appellate division of the IRS addressing this issue and has accrued amounts to date which it believes are adequate to cover any potential disallowance.
 Roy M. Speer, chairman and chief executive officer of HSN, said, "The Jefferson-Pilot decision supports our position and should have a positive impact on the IRS appeals process."
 Home Shopping previously announced it is considering the distribution of all of the capital stock of HSN Communications to its stockholders in the form of a tax-free, pro-rata stock dividend. HSN is continuing to evaluate the impact of such a distribution.
 -0- 4/15/92
 /CONTACT: Home Shopping Network corporate communications department, 813-572-8585, ext. 7420/
 (HSN) CO: Home Shopping Network, Inc. ST: Florida IN: REA SU:


AW-JB -- FL016 -- 8945 04/15/92 17:00 EDT
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Publication:PR Newswire
Date:Apr 15, 1992
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