The firm represents the State Board of Equalization in a case brought by noted inventor Gilbert Hyatt against the Franchise Tax Board and State Board of Equalization challenging the constitutionality of the tax proceedings that lasted more than 22 years. In 2014, the firm obtained a dismissal of the case under the Tax Injunction Act, which prohibits federal lawsuits interfering with state tax assessments. Hyatt appealed, arguing that the proceedings against him were not “plain, speedy, and efficient” and thus fall within an exception to the Tax Injunction Act. The Ninth Circuit affirmed the dismissal in a unanimous published decision, finding that Hyatt at all times had a plain, speedy, and efficient remedy under California’s “pay-then-protest” procedure, but chose not to use it. The Court’s decision can be found here.
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