Dicon Fiberoptics Ruling
The California Supreme Court reversed the Court of Appeal’s holding and found that the taxpayer, not us, has the burden of proof to show a worker is a qualified employee for purposes of the Enterprise Zone (EZ) Hiring Credit. The court also reaffirmed our right to conduct an audit to determine whether a taxpayer is entitled to the EZ Hiring Credit. (Dicon Fiberoptics v. Franchise Tax Board, Cal., No. S173860, 4/26/2012)
While we may audit an employee voucher if we suspect it was inappropriately issued, we do not anticipate that this decision will change how we presently conduct our Enterprise Zone audits.