content: UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 20549
  
                                FORM 8-K
  
           Current Report Pursuant to Section 13 or 15(d) of
                    the Securities Exchange Act of 1934
  
  Date of Report (Date of earliest event reported):  January 18, 2007
                                                     ----------------
  
                TOUCHSTONE APPLIED SCIENCE ASSOCIATES, INC.
  -----------------------------------------------------------------------------
          (Exact Name of Registrant as Specified in its Charter)
  
  
               -----------------------------------------------
  
                Delaware                0-20303             13-2846796
                --------                -------             ----------
     (State or other jurisdiction    (Commission        (I.R.S. employer
           of incorporation)          file number)       identification no.)
  
  
         4 Hardscrabble Heights
             P.O. Box 382
             Brewster, NY                                      10509
         ----------------------                                -----
         (Address of principal                               (Zip Code)
           executive offices)
  
  
     Registrant's telephone number, including area codes: (845) 277-8100
                                                          --------------
  
  ------------------------------------------------------------------------------
                                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 the
          Exchange Act (17 CFR 240.14a-12)
  
  [  ]    Pre-commencement communications pursuant to Rule 14d-2(b)
          under the Exchange Act (17 CFR 240.14d-2(b))
  
  [  ]    Pre-commencement communications pursuant to Rule 13e-4(c)
          under the Exchange Act (17 CFR 240.13e-4(c))
  
  
  <PAGE>
  
  ITEM 4.02.  NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS
              OR A RELATED AUDIT REPORT OR COMPLETED INTERIM REVIEW.
  
        On January 16, 2007, the Audit Committee and management of
  Touchstone Applied Science Associates, Inc. (the "Company")
  concluded after a review of all the pertinent facts, that a
  restatement of the Company's historical financial statements was
  necessary to correct the Company's accounting for a liability in
  connection with employees' earned but unused vacation time in
  Fiscal 2003, Fiscal 2004 and Fiscal 2005. These adjustments are
  non-cash and non-revenue items and relate solely to employees of
  TASA prior to the acquisition of Questar Educational Systems,
  Inc. in Fiscal 2006.  Previously, these costs were only
  recognized when paid.  After consultation with the Company's
  independent public accountants for its fiscal year ended October
  31, 2005 (Fiscal 2005),  Lazar Levine & Felix, LLP, the Company
  has determined that the omission of the accrued vacation pay
  liability is not consistent with United States generally
  accepted accounting principles.  The restatement of the
  financial statements for Fiscal 2005 will not affect revenues
  for Fiscal 2005 or for any previously-reported fiscal period.
  
        These liabilities will reduce net income before tax in
  Fiscal 2005 by $70,725, in Fiscal 2004 by $33,602 and in Fiscal
  2003 by $155,539. The Company will record a balance sheet
  liability of $189,141 at the end of Fiscal 2004 and $259,866 at
  the end of Fiscal 2005.  For Fiscal 2004, the Company will
  record an adjustment to the opening balance liability of
  $155,539 to include the accumulated unused vacation incurred
  prior to Fiscal 2004.  The recording of this liability has the
  effect of reducing fully-diluted earnings per share in Fiscal
  2005 from $0.16 to $0.14, in Fiscal 2004 from $0.29 to $0.28,
  and in Fiscal 2003 from $0.20 to $0.17.
  
        The foregoing adjustments will be reflected in an amendment
  to the financial statements included in the Company's Annual
  Report on Form 10-KSB for Fiscal 2005 to be filed as soon as
  practicable after the filing of this Current Report.
  
        On January 22, 2007, the Company issued a press release
  discussing the above revisions to its financial statements.
  This press release is attached hereto as Exhibit 99.1 and is
  hereby incorporated herein by reference.
  
  ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS
  
        The following exhibit is furnished with this Form 8-K:
  
        Exhibit 99.1      Press Release, issued January 22, 2007
  
  <PAGE>
  
                             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.
  
                                        TOUCHSTONE APPLIED SCIENCE
                                        ASSOCIATES, INC.
  
  
  Date:  January 22, 2007
  
  
                                        By: /s/ ANDREW L. SIMON
                                            -------------------
                                            Andrew L. Simon
                                            President and Chief
                                            Executive Officer
  
                                        By: /s/ JAMES WILLIAMS
                                            ------------------
                                            James Williams
                                            Chief Financial Officer
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "bdy8k.txt", "description": "BODY OF 8-K", "secsgml_size_bytes": 5726}]
metadata_filer: {"company-data": {"conformed-name": "TOUCHSTONE APPLIED SCIENCE ASSOCIATES INC /NY/", "cik": "0000726603", "assigned-sic": "8200", "irs-number": "132846796", "state-of-incorporation": "DE", "fiscal-year-end": "1031"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16689", "film-number": "07543923"}, "business-address": {"street1": "4 HARDSCRABBLE HEIGHTS ROAD", "street2": "P O BOX 382", "city": "BREWSTER", "state": "NY", "zip": "10509", "phone": "8452778100"}, "mail-address": {"street1": "4 HARDSCRABBLE HEIGHTS ROAD", "street2": "P.O. BOX 382", "city": "BREWSTER", "state": "NY", "zip": "10509"}, "former-company": {"former-conformed-name": "TOUCHSTONE APPLIED SCIENCE ASSOCIATES INC", "date-changed": "19920914"}}
text: UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 20549
  
                                FORM 8-K
  
           Current Report Pursuant to Section 13 or 15(d) of
                    the Securities Exchange Act of 1934
  
  Date of Report (Date of earliest event reported):  January 18, 2007
                                                     ----------------
  
                TOUCHSTONE APPLIED SCIENCE ASSOCIATES, INC.
  -----------------------------------------------------------------------------
          (Exact Name of Registrant as Specified in its Charter)
  
               -----------------------------------------------
  
                Delaware                0-20303             13-2846796
                --------                -------             ----------
     (State or other jurisdiction    (Commission        (I.R.S. employer
           of incorporation)          file number)       identification no.)
  
         4 Hardscrabble Heights
             P.O. Box 382
             Brewster, NY                                      10509
         ----------------------                                -----
         (Address of principal                               (Zip Code)
           executive offices)
  
     Registrant's telephone number, including area codes: (845) 277-8100
                                                          --------------
  
  ------------------------------------------------------------------------------
                                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 the
          Exchange Act (17 CFR 240.14a-12)
  
  [  ]    Pre-commencement communications pursuant to Rule 14d-2(b)
          under the Exchange Act (17 CFR 240.14d-2(b))
  
  [  ]    Pre-commencement communications pursuant to Rule 13e-4(c)
          under the Exchange Act (17 CFR 240.13e-4(c))
  ITEM 4.02.  NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS
              OR A RELATED AUDIT REPORT OR COMPLETED INTERIM REVIEW.
  
        On January 16, 2007, the Audit Committee and management of
  Touchstone Applied Science Associates, Inc. (the "Company")
  concluded after a review of all the pertinent facts, that a
  restatement of the Company's historical financial statements was
  necessary to correct the Company's accounting for a liability in
  connection with employees' earned but unused vacation time in
  Fiscal 2003, Fiscal 2004 and Fiscal 2005. These adjustments are
  non-cash and non-revenue items and relate solely to employees of
  TASA prior to the acquisition of Questar Educational Systems,
  Inc. in Fiscal 2006.  Previously, these costs were only
  recognized when paid.  After consultation with the Company's
  independent public accountants for its fiscal year ended October
  31, 2005 (Fiscal 2005),  Lazar Levine & Felix, LLP, the Company
  has determined that the omission of the accrued vacation pay
  liability is not consistent with United States generally
  accepted accounting principles.  The restatement of the
  financial statements for Fiscal 2005 will not affect revenues
  for Fiscal 2005 or for any previously-reported fiscal period.
  
        These liabilities will reduce net income before tax in
  Fiscal 2005 by $70,725, in Fiscal 2004 by $33,602 and in Fiscal
  2003 by $155,539. The Company will record a balance sheet
  liability of $189,141 at the end of Fiscal 2004 and $259,866 at
  the end of Fiscal 2005.  For Fiscal 2004, the Company will
  record an adjustment to the opening balance liability of
  $155,539 to include the accumulated unused vacation incurred
  prior to Fiscal 2004.  The recording of this liability has the
  effect of reducing fully-diluted earnings per share in Fiscal
  2005 from $0.16 to $0.14, in Fiscal 2004 from $0.29 to $0.28,
  and in Fiscal 2003 from $0.20 to $0.17.
  
        The foregoing adjustments will be reflected in an amendment
  to the financial statements included in the Company's Annual
  Report on Form 10-KSB for Fiscal 2005 to be filed as soon as
  practicable after the filing of this Current Report.
  
        On January 22, 2007, the Company issued a press release
  discussing the above revisions to its financial statements.
  This press release is attached hereto as Exhibit 99.1 and is
  hereby incorporated herein by reference.
  
  ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS
  
        The following exhibit is furnished with this Form 8-K:
  
        Exhibit 99.1      Press Release, issued January 22, 2007
  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.
  
                                        TOUCHSTONE APPLIED SCIENCE
                                        ASSOCIATES, INC.
  
  Date:  January 22, 2007
  
                                        By: /s/ ANDREW L. SIMON
                                            -------------------
                                            Andrew L. Simon
                                            President and Chief
                                            Executive Officer
  
                                        By: /s/ JAMES WILLIAMS
                                            ------------------
                                            James Williams
                                            Chief Financial Officer