In a decision published today, the California Supreme Court has decided that FTB does have the authority to audit “behind the voucher” in determining the legitimacy of tax credit claims. The Court states:
For the reasons that follow, we conclude that the FTB may conduct an audit to determine whether a taxpayer is entitled to the enterprise zone hiring tax credit. During such an audit, the FTB may require the taxpayer to establish that the worker is a ?qualified employee? within the meaning of the statute. The FTB is not required to accept a certification or voucher as conclusive or prima facie proof that an employee is qualified, nor is the FTB required to establish that the worker is not a ?qualified employee? under Revenue and Taxation Code section 23622.7, subdivision (c).