IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Seems to me that Obama and Holder must be behind this. It just isn't right. I'd like to see a national movement of withholding financial and volunteer support for Obama's reelection until he comes out unequivocally in support of states rights to regulate medical marijuana.
Barry
:mj:
https://www.waccobb.net/forums/wacco...arinIJLogo.png
IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
By Richard Halstead
Marin Independent Journal
Posted: 03/09/2011 05:28:31 PM PST
The Internal Revenue Service has notified the Marin Alliance for Medical Marijuana in Fairfax that it owes millions of dollars in unpaid back taxes, according to the alliance's founder and director, Lynnette Shaw.
Shaw said the IRS audited the alliance's tax returns for 2008 and 2009 and disallowed all of its business deductions. She said that although dispensaries throughout the state are being audited by the IRS, the alliance is the first to be told it can't deduct business expenses.
"Every dispensary in the nation, past, present and future is dead if this is upheld," Shaw said.
Shaw would not disclose the exact amount she is being ordered to pay but said, "It's a staggering sum, millions and millions." She is also negotiating with the state Board of Equalization regarding sales tax that was not paid in 2005 and 2006.
Shaw said the IRS disallowed her deductions — for buying marijuana, hiring employees, securing office space and more — based on section 280E of the federal tax code, which states that no deduction shall be allowed for any business trafficking in controlled substances.
Under federal law, marijuana is classified as a schedule I controlled substance, a category of drugs not considered legitimate for medical use — despite voters' 1996 approval of Proposition 215, which legalized the use of marijuana for medical purposes in California.
Jesse Weller, an IRS spokesman, said, "We can neither confirm nor deny there is an examination or audit of any taxpayer, because of the disclosure and privacy laws." Weller declined all other comment.Henry Wykowski, a San Francisco lawyer who represents marijuana dispensaries, said, "I'm personally involved in over a dozen audit cases now, and I've been consulted on a number of others." Wykowski said all of the audits are in California.
Steve DeAngelo, director of the Harborside Health Center in Oakland, one of the largest dispensaries in the nation, said the IRS began auditing Harborside's books a year ago.
DeAngelo said section 280E "is the major issue in the Haborside audit."
"If the IRS were to aggressively interpret 280E, it has the potential to close down every medical cannabis dispensary in the United States," DeAngelo said. "If you can't deduct your rent, your payroll, licensing fees, et cetera ... you're going to be taxed out of existence."
Shaw said previous legal battles with the federal government have prepared her for this challenge. She said she plans to mount a legal defense based on the reasoning that there is no rational basis for classifying marijuana as a schedule I drug.
Wykowski said a U.S. Tax Court judge ruled in 2007 that dispensaries can legally deduct expenses associated with all activities except for dispensing marijuana. Wykowski worked on the case, called "Californians Helping to Alleviate Medical Problems Inc. v. Commissioner of Internal Revenue."
For example, Wykowski said people who work at dispensaries often advise people on which type of marijuana will best treat their medical problem. He said this constitutes counseling, not trafficking, so deducting at least a portion of that employee's salary should be allowed.
DeAngelo said, "280E should not apply to us. It was designed for cocaine kingpins, not nonprofit community service organizations. But if it is applied to us, the IRS needs to take into account that the vast bulk of what we do is education, counseling and advocacy, not the actual handling of cannabis."
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Quote:
Posted in reply to the post by Barry:
[I]Seems to me that Obama and Holder must be behind this. It just isn't right. ...
Stunning turn of events. I'm ashamed of Obama. He's getting a letter from me.
-Jeff
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
And to grow industrial hemp! :thumbsup:
Quote:
Posted in reply to the post by Barry:
Seems to me that Obama and Holder must be behind this. It just isn't right. I'd like to see a national movement of withholding financial and volunteer support for Obama's reelection until he comes out unequivocally in support of states rights to regulate medical marijuana.
Barry
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Quote:
Posted in reply to the post by Glia:
And to grow industrial hemp! :thumbsup:
Barry, To say Obama & Holder are behind the IRS going after the Fairfax Dispensary is ludicrous.
I am sure many businesses in Sebastopol would be delighted to simply not pay any sales tax for years.
Does anybody else out there get irritated with all this Obama slamming going on ?
Do you truly feel Bush did a better job, or the McCain-Palin ticket would be superior ?
Let's try to post some positive energy, how about talking about the positive changes that have occurred.
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Quote:
Posted in reply to the post by sunelectric:
Barry, To say Obama & Holder are behind the IRS going after the Fairfax Dispensary is ludicrous.
I am sure many businesses in Sebastopol would be delighted to simply not pay any sales tax for years. ...
The IRS has nothing to do with sales tax. Perhaps you ought to read the article so you know what's happening.
I have little doubt Obama is aware of what's going on. Why I sent him an email myself so I know he knows!
-Jeff
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Jeff, having run a small business for 25 years, I am well aware of our tax structure. I know if you do not file with the Board Of Equalization & you run a retail establishment, you will also receive a visit from the IRS.
The manner in which the Dispensary runs their business is a little loose on the bookkeeping side, considering the vendors are anonymous & not given a 1099, the situation is ripe for a visit from the Man.
It does make me sad they are having issues, as they are nice people & feel it will be resolved, I never disagreed with the IJ's article
My statement was simply, to think Obama & Holder are sitting at their desk plotting to get the Fairfax Dispensary is shear stupidity, I feel they have much more pressing issues at hand.
I was responding to Barry's assertion that Obama and Holder were complicit in the Fairfax Dispensary issues.
We have innocent children dying of starvation & real issues at hand, let's band together for answers to make this the amazing planet it can be.
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Quote:
Posted in reply to the post by sunelectric:
...
My statement was simply, to think Obama & Holder are sitting at their desk plotting to get the Fairfax Dispensary is shear stupidity, I feel they have much more pressing issues at hand.
I was responding to Barry's assertion that Obama and Holder were complicit in the Fairfax Dispensary issues.
...
I did not mean that Obama and Holder are taking a direct interest in the Fairfax Dispensary tax issue, but rather they must be complicit on the larger policy of cracking down on medical marijuana and using 280E to do so.
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Quote:
Posted in reply to the post by Barry:
I Did not mean that Obama and Holder are taking a direct interest in the Fairfax Dispensary tax issue, but rather they must be complicit on the larger policy of cracking down on medical marijuana and using 280E to do so.
Hi Barry, so you are saying, Eric Holden, the first African American Attorney General, and Obama, the first African American President, are complicit in the cracking down on Medical Marijuana.
Well let's really look at this, first once again this is ludicrous & I don't see how you are helping this crazy world by saying such statements, these guys are probably the coolest individuals ever to hold these positions.
Secondly if you check out these links, you will find Eric Holden put a stop to the DEA raids and is embraced by the Medical Marijuana movement.https://www.huffingtonpost.com/2009/..._n_170119.html
https://www.msnbc.msn.com/id/2943370...rijuana-raids/
https://www.theweedblog.com/eric-hol...cal-marijuana/
https://www.washingtonpost.com/wp-dy...101903638.html
https://www.youtube.com/watch?v=kjZeW2fcQHM
The definition of complicit is," involved with others in an illegal activity or wrongdoing " is this really what you believe ?
I believe it is time to take a stand against all the lies & misinformation out there.
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Quote:
Posted in reply to the post by sunelectric:
Hi Barry, so you are saying, Eric Holden, the first African American Attorney General, and Obama, the first African American President, are complicit in the cracking down on Medical Marijuana.
Well let's really look at this, first once again this is ludicrous & I don't see how you are helping this crazy world by saying such statements, these guys are probably the coolest individuals ever to hold these positions.
Secondly if you check out these links, you will find Eric Holden put a stop to the DEA raids and is embraced by the Medical Marijuana movement.
https://www.huffingtonpost.com/2009/..._n_170119.html
https://www.msnbc.msn.com/id/2943370...rijuana-raids/
https://www.theweedblog.com/eric-hol...cal-marijuana/
https://www.washingtonpost.com/wp-dy...101903638.html
https://www.youtube.com/watch?v=kjZeW2fcQHM
The definition of complicit is," involved with others in an illegal activity or wrongdoing " is this really what you believe ?
I believe it is time to take a stand against all the lies & misinformation out there.
Yes. I don't think this would be happening without the approval of Holder (certainly) and probably Obama as well.
https://www.huffingtonpost.com/scott..._b_857852.html
https://www.huffingtonpost.com/paul-..._b_858204.html
(Notice that my links are more current than yours :waccosun:)
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Sorry Barry, my last post was a little harsh, I will look into your links,
Love & Light
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
Not only do the President and his/our Attorney General know what is happening with the crackdown by the IRS, there have been an escalated series of FBI/DEA raids on Medical Marijuana Clinics, and grow sites, around California and a few other states in recent months. The idea that Mr. "Hope & Change" is cool wit' it are not supported by current events.
You guys read the news right? Not just the MSM but the alternative feeds as well? Right? The same stuff is happening with Immigration enforcement, political surveillance and summary raids and arrests, extension of the Patriot Act, prosecution of the "War" against Terror, etc.
I'm glad they iced OBL, good riddance. And all the whinging on the left about how he wasn't responsible, was already dead, if still alive was marginal, didn't do it, was a patsy, etc., etc., etc., all I got's to say is, Prove It! Your suspicions and fears, do not a convincing argument make.
As for facts, President Obama is catering to moderate, mainstream to conservative Independents, Lib's and Conservatives. He wants to be reelected, priority #1 for a Pol. And he's good at his jawb!
Re: IRS tells Fairfax medical marijuana dispensary it owes millions in unpaid taxes
yeah bro, you got it right, O is game is on and he wants 12! are you with it? or against it? ross
Quote:
Posted in reply to the post by "Mad" Miles:
Not only do the President and his/our Attorney General know what is happening with the crackdown by the IRS, there have been an escalated series of FBI/DEA raids on Medical Marijuana Clinics, and grow sites, around California and a few other states in recent months. The idea that Mr. "Hope & Change" is cool wit' it are not supported by current events.
You guys read the news right? Not just the MSM but the alternative feeds as well? Right? The same stuff is happening with Immigration enforcement, political surveillance and summary raids and arrests, extension of the Patriot Act, prosecution of the "War" against Terror, etc.
I'm glad they iced OBL, good riddance. And all the whinging on the left about how he wasn't responsible, was already dead, if still alive was marginal, didn't do it, was a patsy, etc., etc., etc., all I got's to say is, Prove It! Your suspicions and fears, do not a convincing argument make.
As for facts, President Obama is catering to moderate, mainstream to conservative Independents, Lib's and Conservatives. He wants to be reelected, priority #1 for a Pol. And he's good at his jawb!
