The Massachusetts Appeals Court upheld the Appellate Tax Board’s costs-of-performance decision in the AT&T case. Comm’r of Revenue v. AT&T Corp., Dkt. No. 11-P-1462 (Mass. App. Ct. July 13, 2012).  The Court issued an unpublished decision that granted summary disposition in favor of AT&T. In June 2011, the ATB determined that AT&T had properly sourced its receipts from its interstate and international telecommunication services using the “operational” approach. The Appeals Court agreed that the operational approach was the more appropriate method since AT&T could not have provided the long-distance telephone calls to its customers without the integrated long distance network based in New Jersey and other locations. This decision stands in contrast to the Oregon Tax Court’s decision that required AT&T to use the “transactional” approach.