Solutions / Tax Controversy / Legal Wins

Case Study for Audit Defense Services

Client Challenge:

Client had two business facilities located within a five-mile radius. One of the facilities was located within an enterprise zone. Client had 100% of their enterprise zone hiring and sales/use tax credits denied by the Franchise Tax Board due to the client's inability to prove:

  • Vouchered employees performed at least 50% of their services in an enterprise zone
  • Vouchered employees satisfied the criteria requirements set forth in the statute
  • Machinery and equipment was placed in service and used exclusively in the enterprise zone


After a review of the audit history and Client operations, CCG designed and implemented a customized strategy to successfully challenge the Franchise Tax Board's position.


CCG successfully defended $3 million in state income tax credits that the Franchise Tax Board initially disallowed.