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Denver medical marijuana dispensary sues IRS over discriminatory penalties

The head of Colorado NORML, Rachel Gillette, is fighting mad about the way the federal government is discriminating against legal marijuana businesses, and now she’s suing the Internal Revenue Service.

Gillette is representing Allgreens LLC, a Denver medical marijuana dispensary, in its lawsuit against the IRS. At issue is an IRS lien against Allgreens for the payment of $20,000 in penalties from 2013. Gillette believes that the penalty is an unfair discrimination against state-legal marijuana businesses and that the IRS’ proposed solution amounts to entrapment into committing the crime of money laundering.

The IRS accepts payments for required quarterly federal payroll taxes through an online service called the Electronic Federal Tax Payment System (EFTPS). Those taxpayers who do not use the EFTPS are assessed a 10% penalty. Through 2012, Allgreens used the EFTPS to pay its taxes, but in mid-2012, Allgreens lost its bank account as federal regulators began raising alarms about banks accepting marijuana business.

Read more: http://radicalruss.com/colorado-pot-shop-sues-irs/

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Stephen Carter

Stephen Carter is a journalist and information technology specialist living in Waco, Texas. He has been working with the cannabis movement since 2009. He founded Texas Cannabis Report in 2013 to bring Texans accurate cannabis related news.

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