SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                    FORM 11-K

         Annual Report Pursuant to Section 15(d) of the Securities
         Exchange Act of 1934


(Mark One)

(x)      ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

         For The Fiscal Year Ended December 31, 2004

                                       OR

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

         For The Transition Period From _________ to _________

                          Commission File Number 1-1105

                                   AT&T Corp.

A.       Full title of the plan and the address of the plan, if
         different from that of the issuer named below:

         AT&T LONG TERM SAVINGS PLAN FOR MANAGEMENT EMPLOYEES

B.       Name and issuer of the securities held pursuant to the
         plan and the address of its principal executive office:


                                   AT&T CORP.
                                  ONE AT&T WAY
                              BEDMINSTER, NJ 07921


              AT&T Long Term Savings Plan for Management Employees
                 Financial Statements and Supplemental Schedule
                           December 31, 2004 and 2003




AT&T Long Term Savings Plan for Management Employees
Index
December 31, 2004 and 2003
--------------------------------------------------------------------------------


                                                                         Page(s)

Report of Independent Registered Public Accounting Firm........................1

Financial Statements

Statements of Net Assets Available for Benefits................................2

Statement of Changes in Net Assets Available for Benefits......................3

Notes to Financial Statements................................................4-8

Supplemental Schedule

Schedule of Assets (Held at End of Year).......................................9













             Report of Independent Registered Public Accounting Firm



To the Participants and Administrator of
AT&T Long Term Savings Plan for Management Employees



In our opinion, the accompanying statements of net assets available for benefits
and the  related  statement  of  changes in net assets  available  for  benefits
present fairly, in all material respects,  the net assets available for benefits
of AT&T Long Term Savings Plan for Management Employees (the "Plan") at December
31, 2004 and 2003, and the changes in net assets  available for benefits for the
year ended December 31, 2004 in conformity with accounting  principles generally
accepted in the United States of America.  These  financial  statements  are the
responsibility  of the Plan's  management.  Our  responsibility is to express an
opinion on these  financial  statements  based on our audits.  We conducted  our
audits of these  statements  in  accordance  with the  standards  of the  Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain  reasonable  assurance about whether the
financial  statements  are free of  material  misstatement.  An  audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial   statements,   assessing  the  accounting  principles  used  and
significant  estimates made by management,  and evaluating the overall financial
statement  presentation.  We believe that our audits provide a reasonable  basis
for our opinion.

Our audits  were  conducted  for the  purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedule of Assets (Held
at End of  Year)  as of  December  31,  2004 is  presented  for the  purpose  of
additional analysis and is not a required part of the basic financial statements
but is supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure  under the Employee  Retirement  Income
Security Act of 1974. The  supplemental  schedule is the  responsibility  of the
Plan's management.  The supplemental schedule has been subjected to the auditing
procedures  applied in the audits of the basic financial  statements and, in our
opinion,  is fairly  stated in all  material  respects  in relation to the basic
financial statements taken as a whole.




PricewaterhouseCoopers LLP
Florham Park, New Jersey

June 22, 2005



AT&T Long Term Savings Plan for Management Employees
Statements of Net Assets Available for Benefits
December 31, 2004 and 2003
--------------------------------------------------------------------------------

(thousands of dollars)                                2004              2003

Assets
Investments, at fair value
    Investment in Master Trust                   $  7,135,697      $  6,939,310
    Participant loans receivable                       79,700            84,017
                                                 ------------      ------------
             Total assets                           7,215,397         7,023,327
                                                 ------------      ------------
Liabilities
             Total liabilities                              -                 -
                                                 ------------      ------------
Net assets available for benefits                $  7,215,397      $  7,023,327
                                                 ------------      ------------
















   The accompanying notes are an integral part of these financial statements.




AT&T Long Term Savings Plan for Management Employees
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2004
--------------------------------------------------------------------------------

(thousands of dollars)                                            Total

Net assets available for benefits, January 1, 2004         $     7,023,327
                                                           ------------------
Additions
Additions to net assets attributed to
    Net income from investment in Master Trust                     558,907
    Interest on participant loans                                    3,633
                                                           ------------------
                                                                   562,540
                                                           ------------------
Contributions and transfers
    Employee contributions                                         227,681
    Employing company contributions, net                            94,411
    Transfers of participants' balances from other
      plans, net                                                    25,923
                                                           ------------------
                                                                   348,015
                                                           ------------------
           Total additions                                         910,555
                                                           ------------------
Deductions
    Distributions to participants                                 (718,485)
                                                           ------------------
           Total deductions                                       (718,485)
                                                           ------------------
           Net increase                                            192,070
                                                           ------------------
Net assets available for benefits, December 31, 2004       $     7,215,397
                                                           ------------------












   The accompanying notes are an integral part of these financial statements.




AT&T Long Term Savings Plan for Management Employees
Notes to Financial Statements
December 31, 2004
--------------------------------------------------------------------------------


1.        Plan Description

          The AT&T Long Term Savings Plan for  Management  Employees (the "Plan"
          or "LTSPME") is a defined  contribution plan established by AT&T Corp.
          ("AT&T") to provide a convenient way for management  employees  (i.e.,
          employees  whose pay is at  monthly  or annual  fixed  rates and whose
          wages are not subject to automatic wage  progression) of participating
          AT&T  Companies to save on a regular and  long-term  basis.  Effective
          January 1, 2004, the AT&T Savings  Master Trust  ("Master  Trust") was
          established as the successor trust to the Group Trust. Effective as of
          the same date,  State Street Bank and Trust  Company was  appointed as
          successor  trustee to Fidelity  Management  Trust Company for the AT&T
          Savings Master Trust. The LTSPME  participates in the Master Trust for
          the   investment  of  the  pooled  assets  of  various   funds.   Each
          participating plan has an undivided interest in the Master Trust.

          An  eligible  employee  enters  the  Plan  by  authorizing  a  payroll
          allotment  to  invest  his/her  contributions  in one or  more  of the
          twenty-six  (26)  different  funds as set  forth in the  current  Plan
          documents.

          The Comcast Stock Fund was  liquidated  between March 18, 2004 and May
          20, 2004. The proceeds from the sales were  transferred  into the AT&T
          Stable Value Fund.  As of July 30, 2004,  a  participant  who does not
          have, or maintain,  a balance in the Fidelity  Low-Priced  Stock Fund,
          will not be able to  invest  in the  Fidelity  Low-Priced  Stock  Fund
          through  the Plan.  Shares of the Legg Mason  Value  Trust  Investment
          option  were   converted   from   Financial   Intermediary   Class  to
          Institutional  Class as of 4:00 p.m.  Eastern  Time on  September  30,
          2004.  Effective  July 1, 2004,  the Janus Overseas Fund and the Janus
          Worldwide  Fund  options in the Plan were closed to new  contributions
          and  exchanges  in. A  liquidation  of assets in these two Janus funds
          began on October 8, 2004 and was  completed on October 29,  2004.  The
          proceeds  from the sales were  transferred  into the AT&T Stable Value
          Fund  in the  Plan.  Effective  July 1,  2004,  two  new  mutual  fund
          investment options became available under the Plan. The American Funds
          Capital World Growth and Income Fund, Class R-5 and the Morgan Stanley
          Institutional  Fund - International  Equity Portfolio,  Class A Shares
          are  the  two  new  mutual  funds.  On  December  6,  2004,   Fidelity
          implemented an enterprise-wide policy to monitor and address excessive
          short-term  trading in Fidelity  funds sold  through  retail or 401(k)
          plans  for  which  they  keep the  records.  This  policy  establishes
          standards for warning  participants and suspending trading privileges,
          if  necessary,  in  accordance  with  prospectus  rules.  Fidelity has
          offered to implement  this policy for other mutual fund  providers and
          subsequently  T. Rowe Price and Legg Mason  agreed to have their funds
          monitored by Fidelity.

          Employee  allotments  of 2% to 16% of  salary  may be  authorized.  An
          employee may designate allotments as pre-tax allotments,  as after-tax
          allotments  or as a combination  of pre-tax and after-tax  allotments.
          All  participant  contributions  and earnings  thereon are immediately
          vested and not subject to  forfeiture.  Pre-tax  contributions  may be
          made up to the Internal Revenue Service limit of $13,000 in 2004. When
          an employee  contributes to the Plan,  the employing  company (AT&T or
          any AT&T  subsidiary  participating  in the Plan) will  contribute  an
          amount  equal  to  66-2/3%  of  the  first  six  percent  (6%)  of the
          employee's salary  contributed.  Employing  company  contributions are
          made  in  accordance  with  the   participants'   elected   investment
          direction.  A participant  becomes 100 percent vested in the employing
          company contributions after three years of service.

          Employees  who are age 50 or older on or before  December  31st may be
          eligible to make pre-tax  contributions  beyond the  Internal  Revenue
          Service pre-tax limit. The 2004 catch-up contribution limit set by the
          Internal Revenue Service is $3,000.  No company matching  contribution
          is made on catch-up contributions.

          Loans are  available  to all  participants  in an amount not less than
          $1,000,  up to a maximum of 50% of the  participant's  vested  account
          balance or $50,000 minus the  participant's  highest  outstanding loan
          balance in the last twelve (12) months. Upon default, participants are
          considered to have received a  distribution  and are subject to income
          taxes on the distributed  amount.  Loan  transactions are treated as a
          transfer to (from) the investment funds from (to) the Participant Loan
          Account.  The term of the loan shall not exceed fifty-six (56) months.
          The loans  are  collateralized  by the  balance  in the  participant's
          account and bear  interest at the prime rate on the last  business day
          of the month  preceding  the  month in which  the loan was  initiated.
          Interest  rates are fixed for the term of the loan.  Interest rates on
          participant  loans outstanding at December 31, 2004 range from 4.0% to
          9.5%.  Principal and interest are paid through  payroll  deductions or
          participant-initiated payments.

          When a participant terminates  employment,  a single distribution will
          be made of all  vested  amounts  in the  participant's  account if the
          amount to be distributed is $5,000 or less.  However, if the amount to
          be distributed  exceeds $5,000,  and the participant  does not request
          the distribution,  the participant's  account shall remain in the Plan
          and may be withdrawn or distributed at the participant's  request,  or
          as  minimum  required  distributions  beginning  when the  participant
          attains 70-1/2, or upon the participant's death, whichever is earlier.

          Participant  forfeitures  in 2004 were $720,467.  The total  forfeited
          non-vested accounts as of December 31, 2004 is $4,328,635. Forfeitures
          will  be  used   to   reduce   future   employer   contributions   and
          administrative  expenses.  During 2004,  employer  contributions  were
          reduced by $29,255 from forfeited non-vested accounts.

          For a complete  description of the Plan,  participants should refer to
          the Plan  Prospectus and Plan Summary Plan  Description  ("SPD").  The
          Plan is subject to the  provisions of the Employee  Retirement  Income
          Security Act of 1974 ("ERISA").

2.        Accounting Policies

          Basis of Accounting
          The financial  statements  of the Plan are prepared  under the accrual
          method of accounting.

          Payments of Benefits
          Benefits are recorded when paid.

          Valuation of Investments
          Income  and  assets  of  the  Master  Trust  are  allocated  based  on
          participant  balances.  The net  asset  value of the  Master  Trust is
          calculated  by the Trustee.  The Trustee  determines  the value of the
          underlying assets in the investment  manager  portfolios,  taking into
          account the market values supplied by a generally  accepted pricing or
          quotation  service or  quotations  furnished by one or more  reputable
          sources,  such as securities  brokers,  dealers or investment bankers,
          mutual fund administrators,  values of comparable property, appraisals
          or other relevant  information.  Investments in AT&T common shares and
          other  securities  listed on national  stock  exchanges are carried at
          fair value  determined on the basis of the last published  sales price
          per share on the last business day of the year.  Securities  traded in
          over-the-counter  markets and  government  obligations  are carried at
          fair value based on the last bid prices or closing  prices on December
          31, as listed in published  sources if available or, if not available,
          from other  sources  considered  reliable.  Contracts  with  insurance
          companies  and  financial   institutions,   which  are  fully  benefit
          responsive, are carried at contract value (representing  contributions
          made under the  contracts  plus  accumulated  interest at the contract
          rates).  All other  investments  are  carried at the fair value at the
          close of business on December 31.  Participant  loans  receivable  are
          valued at cost which  approximates  fair value.  Participant loans are
          assets of the Plan and are not part of the Master Trust.

          Purchases and Sales of Investments
          Purchases and sales of securities are recorded on the trade date.

          Investment Income
          Dividend income is recorded on the ex-dividend  date.  Interest income
          is accrued as earned.

          Net Appreciation (Depreciation) in the Fair Value of Investments
          The Plan presents in the statement of changes in net assets  available
          for benefits the net appreciation  (depreciation) in the fair value of
          investments,  which  consists of the realized  gains  (losses) and the
          change for the year in unrealized appreciation (depreciation) on those
          investments.

          Use of Estimates
          The  preparation of financial  statements in conformity with generally
          accepted  accounting  principles requires management to make estimates
          and  assumptions  that  affect  the  reported  amounts  of assets  and
          liabilities,  and changes therein, and disclosure of contingent assets
          and liabilities. Actual results could differ from those estimates.

          Risks and Uncertainties
          Investments  held by the Master  Trust and Plan are exposed to various
          risks such as interest  rate,  market,  and credit  risks.  Due to the
          level of risk  associated  with  certain  investments,  it is at least
          reasonably  possible that changes in the values of  investments  could
          occur in the near term and that such changes could  materially  affect
          participants'  account  balances  and  the  amounts  reported  in  the
          statement of net assets available for benefits.

3.        Tax Status

          The Internal  Revenue Service ("IRS") has determined and informed AT&T
          by a letter dated March 28, 2005,  that the Plan,  restated  effective
          January 1, 2001 with amendments through February 28, 2002, and related
          trust are  qualified in  accordance  with  applicable  sections of the
          Internal  Revenue  Code  ("IRC").  The  Plan has  been  amended  since
          February 28, 2002. However,  the Plan Administrator  believes that the
          Plan is qualified and is currently  being operated in compliance  with
          the applicable requirements of the IRC.

4.        Concentrations of Investment Risk

          At December 31, 2004, Plan participants' accounts that are invested in
          the Company  stock  option is exposed to market risk in the event of a
          significant decline in the value of AT&T Corp. stock.

5.        Plan Termination

          Although it has not  expressed any intent to do so, AT&T has the right
          under the Plan to  discontinue  its  contributions  at any time and to
          terminate the Plan subject to the provisions of ERISA. In the event of
          Plan  termination,  the Plan  provides  that the net  assets are to be
          distributed  to  participating  employees  in  amounts  equal to their
          respective interest in such assets.

6.        Plan Expenses

          In general, fees paid for Plan administration, including recordkeeping
          (except for such services as are  attributable to the participant loan
          program),  are paid from the trust,  unless those expenses are paid by
          the Company or participant(s).  Fees for trustee services are paid out
          of  trust  assets.   Expenses   attributable  to  the  management  and
          investment of each of the investment  options shall be charged against
          respective options.

7.        Master Trust Investments

          The Trust Investments presented as of December 31, 2004 are those held
          by State  Street  Bank and  Trust  Company,  as  Trustee,  in the AT&T
          Savings  Master Trust.  The  investments  presented as of December 31,
          2003 are those held by Fidelity  Management Trust Company, as Trustee,
          in the Group Trust.


Type of Master Trust Investments                            December 31
--------------------------------------------------------------------------------
(thousands of dollars)                                  2004           2003

Government Securities                             $        -      $   16,572
Short-term securities                                 40,201          10,189
Corporate bonds                                        1,205           6,127
Common stocks                                      1,009,660       1,567,644
Mutual funds                                       3,072,840       2,795,255
Commingled funds                                   1,381,388       1,294,002
Investment contracts
     Guaranteed Investment Contracts                 276,552         344,575

     Synthetic Investment Contracts
     Government Securities                           348,836         625,298
     Short-term securities                            64,152         251,905
     Corporate bonds                               2,428,782       1,687,291
     Derivatives                                          17             186
     Other                                           (44,387)       (173,684)
     Wrapper                                         (62,410)        (83,151)

Cash                                                   5,650           2,862
                                                  ----------      ----------
              Total Master Trust Investments      $8,522,486      $8,345,070
                                                  ----------      ----------

--------------------------------------------------------------------------------


                                                                December 31,
                                                             ------------------
Allocation of Master Trust Investments                       2004         2003

AT&T Long Term Savings Plan for Management Employees         83.73%       83.15%
AT&T Long Term Savings and Security Plan                     15.80        16.54
AT&T Retirement Savings and Profit Sharing Plan               0.39         0.22
AT&T of Puerto Rico, Inc. Long Term Savings Plan for
    Management Employees                                      0.07         0.08
AT&T of Puerto Rico, Inc. Long Term Savings and
    Security Plan                                             0.01         0.01
                                                            -------      -------
                                                            100.00%      100.00%
                                                            -------      -------


Net appreciation in fair value of Master Trust investments     December 31, 2004

Corporate bonds                                                         $    240
Common stocks                                                             10,919
Mutual funds                                                             252,157
Commingled funds                                                         147,355
                                                                        --------
     Total net appreciation in fair value of Master Trust investments   $410,671
                                                                        --------
Investment income
Interest                                                                $123,603
Dividends                                                                109,440
                                                                        --------
                                                                        $233,043
                                                                        --------


8.        Litigation

          AT&T is involved in a class action lawsuit brought by former employees
          on behalf of the LTSPME  employees.  The  complaint  alleges  that the
          Company and various  members of the AT&T Board of  Directors  breached
          their fiduciary  duties to the Plan and the participants by permitting
          the Plan to  purchase  and hold  shares of the AT&T  Stock  Fund,  and
          misrepresented  and failed to disclose  material facts to the Plan and
          participants  in  connections  with the management of the Plan assets.
          The parties have reached an agreement in principle and the  settlement
          amount, if approved, will not be material to the Plan or the Company.

9.        Related Party Transactions and Party-in-Interest

          The Plan invests in common shares of AT&T Corp. stock, which qualifies
          as a related  party  transaction.  At December 31, 2004,  the total of
          these investments  amounted to $220,795,948 or approximately 3% of the
          Master Trust. At December 31, 2003, the total amounted to $256,799,741
          or approximately 3% of the Group Trust.

10.       Subsequent Events

          On  January  31,  2005,  SBC  Communications  and  AT&T  announced  an
          agreement  for SBC to acquire  AT&T.  Employees  enrolled  in the AT&T
          Savings Plans can continue to make  contributions,  choose  investment
          direction and receive company matching  contributions until the merger
          closes.  Any decision on benefit plans after the close will be made by
          SBC,  subject to any  constraints  provided  by the merger  agreement.
          Under the merger  agreement,  SBC has  agreed  that  employees,  for a
          period of time after the merger,  will have  compensation  and benefit
          plans  and programs that are no less  favorable in the aggregate  than
          they have at AT&T.  This  commitment  will  continue to the end of the
          plan  year  (December  31)  following  the  first  anniversary  of the
          closing.

          In March 2005,  the automatic distribution threshold changed to $1,000
          from $5,000.



AT&T Long Term Savings Plan for Management Employees
Schedule of Assets (Held at End of Year)
December 31, 2004
--------------------------------------------------------------------------------

(thousands of dollars)
Name of Issuer and Title of Issue                      Cost              Value
Participant Loans Receivable (4.0% -  9.5%)       $    79,700        $   79,700
                                                                     ----------
Investment in Master Trust                                           $7,135,697
                                                                     ----------



                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Savings Plan  Committee  has duly caused this annual  report to be signed by the
undersigned thereunto duly authorized.



                                       AT&T LONG TERM SAVINGS PLAN
                                       FOR MANAGEMENT EMPLOYEES

                                       By Savings Plan Committee




                                       /s/  Brian Byrnes
                                       ______________________________
                                       Brian Byrnes
                                       Secretary of the Savings Plan Committee

Date:  June 27, 2005



                                  Exhibit Index

Exhibit No.

    23            Consent of PricewaterhouseCoopers LLP