IRS Targets Medical Marijuana Businesses

Thursday, 30 May 2013 12:25 PM

By Melanie Batley

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The IRS has been systematically targeting legal medical marijuana businesses to pay more taxes using an obscure statute originally intended for illegal drug trafficking.

According to The Huffington Post, the Treasury Department is now applying Section 280E of the tax code, which disallows "deductions incurred in the trade or business of trafficking in controlled substances," to medical marijuana businesses.

Urgent: Is Obama Telling the Truth on IRS, Benghazi Scandals?

"Section 280E was passed by Congress to deprive drug dealers on corners from deducting their expenses," Henry Wykowski, a defense lawyer who represents dozens of dispensaries under audit in California, told The Huffington Post. "The IRS is using this law in a way it was never intended to be used." As a result, marijuana companies would be forced to pay higher taxes and could be run out of business.

But when asked about the agency's targeting of medical marijuana dispensaries, IRS spokesman Bruce Friedland pointed to a 2010 memo the IRS sent to members of Congress stating that "neither section 280E nor the Controlled Substances Act makes exception for medically necessary marijuana."

"It's not as shocking as a SWAT team raiding the [medical cannabis] facilities," said Aaron Smith, executive director of the National Cannabis Industry Association. But he told the Huffington Post IRS audits have become a silent killer for the industry.

"Attacking state-legal businesses is extremely unpopular, but in doing so through financial means, they're able to undermine state medical marijuana laws without drawing as much ire from the voters," Smith said.

He added, "The auditing of dispensaries by the IRS is unfair and unreasonable and should be of concern to everybody. If they can do it to one group, they can do it to any group."

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

US Ebola Patient's Sister: Brother Told Hospital He Had Been to Liberia

Wednesday, 01 Oct 2014 13:17 PM

The first patient to be diagnosed with Ebola in a U.S. hospitalwas evaluated initially and turned away, a critical misse . . .

Doctor: US Not Prepared to Deal With Ebola

Wednesday, 01 Oct 2014 13:11 PM

The details surrounding the first Ebola patient diagnosed in the United States is a sign that the country is not prepare . . .

Rep. Trey Gowdy: WH Should Pay Attention to Rep. Cummings on Secret Service

Wednesday, 01 Oct 2014 12:58 PM

The White House should pay attention when someone like Maryland Democratic Rep. Elijah Cummings calls for change in the  . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved