Arizona state lawyers are seeking to recover more than $20 million they allege was illegally taken from approximately 750,000 Arizona taxpayers. This legal effort follows a federal judge's rejection, prompting attorneys to appeal to a federal appellate court for the opportunity to argue that the Internal Revenue Service acted unlawfully in imposing federal income tax on $260 million distributed as a one-time state tax rebate. Separately, the Arizona auditor is engaged in lawsuits with the county over a $38 million embezzlement case. In other legal developments, the U.S. Supreme Court declined to review a $25,000 sanction against a self-represented taxpayer who made frivolous claims regarding the taxability of his salary. Additionally, the Supreme Court refused to hear a case involving real estate investors seeking additional compensation from a New York transportation authority that used eminent domain to acquire their renovated residential property.