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Lead case for EZ hiring credit vouchers appealed

Thursday, December 13, 2007

Lead case for EZ hiring credit vouchers appealed

After a dismissal of its Enterprise Zone (EZ) Hiring Credit voucher case by a Los Angeles Superior Court judge, a taxpayer has appealed to the second district court of appeals, making it the lead case challenging the FTB policy of auditing certain taxpayers who claimed the EZ hiring credit. (Dicon Fiberoptics Inc. v. FTB (October 11, 2007) Cal.Ct.App., No. B202997).

The issue is whether the FTB has the authority to audit tax credit vouchers the taxpayer received from local government agencies for hiring workers in EZs. This is the same argument Deluxe Corporation had when it appealed its case to the BOE and lost. (Appeal of Deluxe Corporation (December 12, 2006) 2006-SBE-003) Deluxe Corporation has also filed a lawsuit challenging the FTB’s ruling in that case. (Deluxe Corp. v. California Franchise Tax Board, San Francisco Superior Court Docket No. CGC 07-462305) A trial is scheduled for April 21, 2008.

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