Dicon Fiberoptics, Inc. v. Franchise Tax Board
The California Supreme Court has concluded that the California Franchise Tax Board (FTB)
may conduct an audit to determine whether a taxpayer is entitled to an enterprise
zone hiring credit for corporation franchise and income tax purposes, and during such
audit may require the taxpayer to establish that the employee is a “qualified
employee.” The FTB is not required to accept a certification or voucher from
a local agency as conclusive or prima facie proof that an employee is a “qualified
employee,” nor is the FTB required to establish that the employee is not a “qualified
While this decision may be troubling to some, TALX clients need not worry. TALX maintains
the highest ethical standards regarding certification and vouchering and we welcome
the additional scrutiny of the program.
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