In an unanimous opinion today, the California Supreme Court ruled  that the FTB can in fact audit behind the EZ voucher.  The voucher certificate is no longer considered “prima facie” evidence that the worker is qualified for the EZ program.  The opinion states:

We reverse the Court of Appeal’s holding that a certification issued by a governmental agency for purposes of the hiring tax credit under Revenue and Taxation Code section 23622.7 constitutes “prima facie proof of a worker is a ‘qualified employee,’ ” which shifts to the Franchise Tax board the “burden of demonstrating an employee is not a qualified worker for which no voucher should have issued. ” In all other respects, the Franchise Tax Board does not challenge the Court of Appeal’s judgment, and it is affirmed. Majority Opinion by Liu, J. — joined by Cantil-Sakauye, C.J., Kennard, Baxter, Werdegar, Chin, and Corrigan, JJ.

Tags: california enterprise zone, california tax law, california tax news, Dicon, enterprise zone news, EZ tax credits, FTB, hiring tax credits, Supreme Court

This entry was posted on Thursday, April 26th, 2012 at 11:18 am and is filed under Enterprise Zones, Tax News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.