-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 F5n2NK6mqSyWQwuF1r8eq615scyaWW0zFI7zkOYBg9qxjod4KwbmTdR4+UVRIqjy
 FcFEFDt1QtvIgWsb/7ucKw==

<SEC-DOCUMENT>0001179110-04-014593.txt : 20040712
<SEC-HEADER>0001179110-04-014593.hdr.sgml : 20040712
<ACCEPTANCE-DATETIME>20040712120948
ACCESSION NUMBER:		0001179110-04-014593
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040708
FILED AS OF DATE:		20040712

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			IPARTY CORP
		CENTRAL INDEX KEY:			0001078383
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-MISCELLANEOUS SHOPPING GOODS STORES [5940]
		IRS NUMBER:				134012236
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		270 BRIDGE STREET, SUITE 301
		CITY:			DEDHAM
		STATE:			MA
		ZIP:			02026
		BUSINESS PHONE:		6173230822

	MAIL ADDRESS:	
		STREET 1:		270 BRIDGE STREET, SUITE 301
		CITY:			DEDHAM
		STATE:			MA
		ZIP:			02026

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			LESSIN ROBERT H
		CENTRAL INDEX KEY:			0001074501
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-CATALOG & MAIL-ORDER HOUSES [5961]
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1228

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15611
		FILM NUMBER:		04909513

	BUSINESS ADDRESS:	
		STREET 1:		1700 EAST PUTNAM AVE
		CITY:			OLD GREENWICH
		STATE:			CT
		ZIP:			068707000
		BUSINESS PHONE:		2033217900

	MAIL ADDRESS:	
		STREET 1:		1700 EST PUTNAM AVE
		CITY:			OLD GREENWICH
		STATE:			CT
		ZIP:			068707000
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-07-08</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001078383</issuerCik>
        <issuerName>IPARTY CORP</issuerName>
        <issuerTradingSymbol>IPT</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001074501</rptOwnerCik>
            <rptOwnerName>LESSIN ROBERT H</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>520 MADISON AVE</rptOwnerStreet1>
            <rptOwnerStreet2>12TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-07-08</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2474100</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2474100</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">In connection with the dissolution of iParty LLC on July 8, 2004, RHL Ventures LLC received a distribution of 4,948,200 shares of Common Stock of the Issuer on account of its 82.47% membership interest in iParty LLC. In connection with a distribution by RHL Ventures, LLC to its members on July 8, 2004, Robert H. Lessin received a distribution of 2,474,100 shares of Common Stock of the Company on account of his 50.0% membership interest in RHL Ventures, LLC.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Robert H. Lessin</signatureName>
        <signatureDate>2004-07-12</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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