<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>eightk092105.txt
<DESCRIPTION>AT&T FORM 8-K DATED SEPTEMBER 21, 2005
<TEXT>

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT
                         PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                       Date of Report: September 21, 2005


                                   AT&T CORP.
               (Exact Name of Registrant as Specified in Charter)

                                    New York

                 (State or Other Jurisdiction of Incorporation)

                                1-1105 13-4924710
           (Commission File Number) (IRS Employer Identification No.)


                                  One AT&T Way
                   Bedminster, New Jersey            07921
              (Address of Principal Executive      (Zip Code)
               Offices)


       Registrant's telephone number, including area code: (908) 221-2000

                                 Not Applicable

          (Former Name or Former Address, If Changed Since Last Report)


Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (See General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

[ ]  Soliciting  material  pursuant to Rule 14a-12  under  Exchange  Act (17 CFR
240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))

Section 1. Registrant's Business and Operations

Item 1.01.  Entry into a Material Definitive Agreement

     On September 21 2005,  our  Compensation  and Employee  Benefits  Committee
approved a special tax allowance and gross-up  arrangement  estimated at $11,700
for Mr.  Eslambolchi  in connection  with imputed income to him arising from the
authorized  personal use by Mr.  Eslambolchi and his family of company aircraft.
Mr.  Eslambolchi's title is President AT&T GNTS, AT&T CTO and AT&T CIO and he is
a Named Executive Officer of AT&T Corp.


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                       AT&T CORP.


                                       /s/  Robert S Feit
                                       ----------------------------------
                                       By:  Robert S. Feit
                                            Vice President - Law and Secretary


September 21, 2005

</TEXT>
</DOCUMENT>