The California Court of Appeals ruled that the FTB has legal authority to audit vouchers issued by local Enterprise Zone agencies that handle the voucher process.  The Court held that the FTB bears the burden of proof in rebutting the voucher’s prima facie value as evidence that an employee is a “qualified worker,” and may not rely on an employer’s failure to produce during the audit documents establishing a worker’s eligibility to the extent regulations governing the tax credit charge the enterprise zone, not the employer, with the obligation to maintain documents of workers’ eligibility.

For more information, see the full case file here:

Dicon Fiberoptics, Inc. v. Franchise Tax Board – filed May 7, 2009, Second District, Div. Eight