Opinion ID: 2959721
Heading Depth: 1
Heading Rank: 3

Heading: conclusion

Text: To succeed on its claim for a refund, AT&T was required to (1) show the costs of performance for each income-producing activity, and then (2) show that the greater part of those costs had been incurred in some state other than Oregon. The cost study that AT&T submitted did not identify the correct income-producing activities and it did not correctly calculate the costs of performance for those activities. AT&T thus failed to make the showing required to meet its burden of proof. Accordingly, we conclude that the Tax Court prop- erly denied AT&T’s request for a refund. We need not, and do not, address the other questions presented by the parties, including whether the access charges paid to local exchange carriers should be counted as part of the relevant incomeproducing activity. The judgment of the Tax Court is affirmed. 15 We note that, if the department’s interpretation of OAR 150-314.665(4) (2) leads to unfair results in particular cases, then either the taxpayer or the department may seek an alternative method of apportionment. See ORS 314.670 (UDITPA section 18; if ordinary method of apportionment under UDITPA does not “fairly represent the extent of the taxpayer’s business activity in this state,” then alternative method may be used); see also OAR 150-314.280-(M) (2) (for public utilities being taxed under ORS 314.280, if ordinary methods of apportionment “do not fairly and accurately reflect the net income of the business done within Oregon,” then alternative method of apportionment may be used).