Allgreens Medical Marijuana Dispensary Filed A Petition In U.S. Tax Court To Reverse The Penalties For Paying Their Taxes In Cash
The financial fallout from the government’s slow decision to legalize medical marijuana nationwide can be hard to understand. But once you realize that different agencies within the government never know what other agencies are doing, it’s easier to shake your head and say it’s normal government behavior.
Medical marijuana dispensaries are finding that fact out the hard way. Banks won’t touch the cash collected from the dispensaries because they fear the government will come after them for money laundering. And, the IRS won’t take cash as payment for tax debt even when taxes are paid on time. The government penalizes dispensaries for paying not paying by electronic transfer.
That’s what happened to the Allgreens medical marijuana dispensary in Colorado. People at Imaging Advantage have learned that Allgreens paid their taxes on time, but the IRS penalized them for paying in cash. Allgreens doesn’t have a bank account because the banks say, no thanks when they try to deposit cash. Allgreens was faced with a $25,000 penalty for paying their withholding taxes on time. Allgreens filed a petition in U.S. Tax Court and eventually the IRS agreed to refund the penalty.