Marijuana Shop Sues Over IRS Cash Penalty

DENVER (AP) — A marijuana business in Colorado has filed a lawsuit against the Internal Revenue Service for assessing a penalty for paying taxes in cash.

The IRS charges a 10 percent penalty on cash payments for federal employee withholding taxes.

Because pot is illegal under federal drug law, marijuana businesses have trouble accessing banking services despite federal guidance earlier this year on how banks may accept pot money.

The Denver Post reports that dispensary Allgreens LLC of Denver is challenging the IRS practice of fining cash payments. The company has filed a petition in U.S. Tax Court.

The IRS says Allgreens owes more than $20,000 in penalties. No hearing date has been set for the petition.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Denver

JonBenét Ramsey Docuseries
DAY OF SERVICE

Listen Live

AM/FM Stations

Featured Shows & Multimedia