Medical Marijuana Businesses Targeted By IRS

Colorado Independent:

In targeting the medical marijuana industry, the IRS is pursuing action that could send shockwaves through the medical marijuana industry -- or even destroy it completely.

The IRS is thought to have begun audits on at least 12 medical marijuana dispensaries in California under the determination that past business deductions are invalid because of a clause in the federal tax code prohibiting any business that traffics in Schedule I or II drugs from making business deductions on their tax returns. The move could bankrupt every dispensary that it targets. The first dispensary to receive a final audit decision from the IRS is the Marin Alliance for Medical Marijuana (MAMM) in Fairfax, Calif.

Read the whole story: Colorado Independent

Comments

[Blackorpheus]

03:03 PM on 03/22/2011

Predictable. The only official knock against medical M is that big industry has not yet cashed in on it.

[Blackorpheus]

12:22 PM on 03/23/2011

In truth, medical M is best kept marginally illegal, 'cause if big biz gets its hands on it, it shoots the M with chemicals for longer shelf life, even as it strips much of the real zip. We can only dream if the dream in not filthied o'er with commerce.

[Littlewords]

02:45 PM on 03/22/2011

Where is the President on this, who promised to reign in his drug w@r dogs from the medicinal marijuana laws. His statement was that as long as they were operating within the parameters of state law, he'd pull the Feds back from pursuit. Yet, here comes Federal IRS full throttle at the issue.

Mr. President why are you allowing this harassment?

[Blackorpheus]

01:48 PM on 03/23/2011

Where is the Prez? He is toking some medical M, filling out his NCAA brackets, then shooting hoops in the Rose Garden fantasizing that he is a left-handed Michael Jordan.

[Gemstoned]

11:48 AM on 03/19/2011

As long as MJ is schedule 1 - it has NO medicinal value ! How does the IRS plan on taxing something of no value ? Don't our agencies need to get on the same page ???

[duncan20903]

04:05 PM on 03/19/2011

How about taking a few minutes and trying to understand the very basic premise that it would be sheer idiocy to exempt illegal profits from being taxed?

It always stuns me when people think income from illegal actions is tax exempt. That would penalize people for following the law you know.

I know, everyone calls it "tax free" income when it's actually "tax evaded" income. If you looked into the history of Section 280E you'll find it got implemented because some criminal actually paid his taxes when due on his ill got gains. When they caught him doing his crimes they went to charge him with tax evasion, and were upset because he hadn't actually broken that law. So they simply made it impossible for a criminal to comply, because gosh knows if you break one law you've broken them all.

[Ssufyerd Kaz]

02:41 AM on 03/19/2011

Feds Threaten State Dispensaries Nationwide

Read the Department of Justice's "Haag Memo" here:
http://www.cannabistherapyinstitute.com/legal/feds/doj.haag.memo.pdf

Get on the Cannabis Therapy Institute email list for updates:
http://www.cannabistherapyinstitute.com/

Protest Federal Intervention into State Medical Marijuana Laws
Call the White House at [phone] between 9:00 AM to 5:00 PM EST and send an email right now:

In a little-publicized memo, the federal government has indicated that the
gloves are off with regards to medical marijuana dispensaries, "regardless
of state laws." Previous memos had indicated a loosening of federal
prosecutions of medical marijuana, however the new memo states very clearly that the feds consider all dispensaries illegal under federal law and that their prosecution is a "core priority" of the feds.

The "Haag Memo" was written on Feb. 1, 2011 from United States Attorney Melinda Haag (Northern District of California) to John A. Russo, Esq., Oakland City Attorney, in response to an Oakland City Council request for guidance regarding medical marijuana and federal law. The memo was written with consultation and approval from U.S. Attorney General Eric Holder.

Read more at http://www.cannabistherapyinstitute.com/

[Ssufyerd Kaz]

02:53 AM on 03/19/2011

Send the White House an email at http://salsa.democracyinaction.org/o/182/p/dia/action/public/?action_KEY=6183

[Gemstoned]

07:43 PM on 03/18/2011

It's time the IRS go after the bigger problem and audit the DEA - force them to pay their share. God knows they waste enough of the public's $$$ irresponsibly..... Hold them accountable !

[Holly Wood]

04:35 PM on 03/18/2011

The best Los Angeles Marijuana can be found on a website called www.labudsmoke.com

[bigfun]

02:38 PM on 03/18/2011

it's a gateway drug, everybody! first people smoke pot and then they play endless guitar solos. it's the latter that we really need to worry about, but we can't stop it without cracking down on the former.

[AZmarijuana dot com]

12:14 PM on 03/18/2011

This isn’t the first time the IRS has attempted to use this clause to go after medical marijuana dispensaries. In 2007, the agency assessed that San Francisco-based dispensary Californians Helping to Alleviate Medical Problems (CHAMP) owed nearly half a million dollars in back taxes. The IRS argued at the time that Section 280E of the U.S. Tax Code, created in the early ‘80s to prevent drug dealers from writing off “business” expenses, meant that because CHAMP’s business was built on a drug that is illegal under federal law, the business deductions it made that year were invalid. CHARM took its case to U.S. Tax Court and won, cutting its payments from $426,000 to $4,905. Read more at www.AZmarijuana.com

[fumes]

12:18 PM on 03/18/2011

bravo!

[davaocityforever]

11:17 AM on 03/18/2011

Of course they target something harmless like marijuana. Forget the uber elite billionaires that have destroyed the US. Go after the little guy. They (IRS) have been doing this for decades and it won't stop without a revolution.

[John Avery]

01:37 PM on 03/18/2011

Unfortunately, thanks to the GOP, the IRS can't go after Billionaires because they don't pay taxes.

[deinfluenced]

11:13 AM on 03/18/2011

Give me legal marijuana or give me death

[fumes]

12:20 PM on 03/18/2011

you're from New Hampshire aren't you?

[duncan20903]

12:42 PM on 03/18/2011

Have you ever wondered what it would be like to be in prison in New Hampshire, and all day long manufacturing license plates that say "Live Free or Die"?

[Philosopher-king]

10:58 AM on 03/18/2011

Our government acts like they have nothing better to do but to stifle the marijuana business. Please get a life, free the gd weed and lets move on to more important problems. Stop wasting tax payer money worrying if grandma is toking on a smoke.

[Judson Wallace]

10:51 AM on 03/18/2011

Thanks Obama.

[SmotPoker]

10:44 AM on 03/18/2011

Tools.

[fumes]

10:39 AM on 03/18/2011

first the DEA..

and now the IRS..

have become arms of Big Pharm!

what a phony war this is..

on such a wonderful, natural and ancient panacea!

let it be..

and let it be free as it has always been since antiquity.