Huffington Post: “the Internal Revenue Service has been systematically targeting medical marijuana establishments, relying on an obscure statute that gives the taxing agency unintended power. The IRS has been functioning as an arm of justice, employing the U.S. tax code as a weapon in the federal government’s ongoing war against legal cannabis. The majority of Americans favor legalization of marijuana, while 18 states and the District of Columbia have already legalized medical marijuana. But pot businesses in those states are vulnerable to the federal government’s strategic application of IRS Code Section 280E, a law enacted in 1982 after a drug dealer claimed his yacht and weapons purchases as legitimate business expenses — and long before medical marijuana was first legalized in California in 1996. Now the IRS is applying a rule originally aimed at illegal (and often violent) drug trafficking to businesses that are entirely legal under their states’ laws. Medical marijuana dispensaries are facing audits and heavy tax bills that could force them out of business.
IRS Targets Medical Marijuana Businesses In Government’s Ongoing War On Pot
By On the Net|2014-05-20T10:34:20-07:00May 29th, 2013|Stories & Articles, Tax Issues|Comments Off on IRS Targets Medical Marijuana Businesses In Government’s Ongoing War On Pot
About the Author: On the Net
The author of this article is Richard Keyt, an Arizona business law attorney who is the creator of this Arizona medical marijuana law website. Connect with Richard at 480-664-7478 or on Google+