IRS Claims Harborside Health Center Owes $2.5 Million in Back Taxes on Sales of $22 Million

The Bay Citizen:  “IRS Claims Harborside Health Center Owes $2.5 Million in Back Taxes on Sales of $22 Million – Oakland’s Harborside Health Center — the largest medical marijuana dispensary on the West Coast — lost the first round in a high-stakes battle with the Internal Revenue Service that could spell trouble for the booming pot industry. In a letter to Harborside late last week, the IRS ruled that the dispensary cannot deduct standard business expenses such as payroll and rent, because it is involved in what the agency terms ‘the trafficking of controlled substances,’ said Luigi Zamarra, Harborside’s chief financial officer. . . .If the IRS ultimately prevails, ‘we would close our doors and go away because the business model wouldn’t work,’ he said.”

See also “Harborside’s Death Tax,” which says:

“The federal government is attempting to tax Oakland’s Harborside Health Center — perhaps the country’s largest and most prominent medical marijuana dispensary — out of existence. “

Read Richard Keyt’s article called “IRS is in the Early Stages of a War to Kill Medical Marijuana Dispensaries.”

By |2017-10-07T09:54:52-07:00October 5th, 2011|California News, Federal Dispensary Attacks, Tax Issues|Comments Off on IRS Claims Harborside Health Center Owes $2.5 Million in Back Taxes on Sales of $22 Million

Millions at Stake in IRS Audit of Oakland Medical Marijuana Dispensary

Sacramento Bee:  Harborside Health Center in Oakland, California “handles $22 million in annual medical marijuana transactions.  Now Harborside is attracting scrutiny from the Internal Revenue Service. Since last year, the IRS has been auditing 2008 and 2009 federal tax returns for the Oakland location, one of two outlets Harborside operates for 70,000 medical marijuana users. . . . Harborside and other California dispensaries – which currently pay more than $100 million in state sales taxes in addition to local fees – may be in peril if the IRS rigidly enforces its tax code.”

 

By |2019-06-14T08:24:54-07:00March 19th, 2011|Tax Issues|Comments Off on Millions at Stake in IRS Audit of Oakland Medical Marijuana Dispensary

IRS Auditing Harborside Health Center Oakland’s Biggest Pot Dispensary

The Bay Citizen:  “In an ominous portent of the clash between federal and state law over medical marijuana, the IRS is auditing the Bay Area’s largest medical pot dispensary, Harborside Health Center . . . . a Nov. 15 letter that Harborside sent to Sen. Barbara Boxer asking for tweaks in tax laws that can result in near-crippling taxes on pot dispensaries . . . . Harborside has exploded in popularity with 58,000 members . . . . The dispensary brings in around $20 million in revenue each year”

By |2017-10-07T09:54:49-07:00December 10th, 2010|Stories & Articles, Tax Issues, Video|Comments Off on IRS Auditing Harborside Health Center Oakland’s Biggest Pot Dispensary