DENVER (AP) – U.S. Sen. Michael Bennet and U.S. Rep. Ed Perlmutter are asking the Internal Revenue Service to waive penalties levied on marijuana businesses for paying taxes in cash.
The IRS charges a 10 percent penalty on cash payments for federal employee withholding taxes. But Bennet and Perlmutter say in the letter Friday to IRS Commissioner John Koskinen that Colorado marijuana businesses “are having extreme difficulties accessing the banking system.”
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. Bennet and Perlmutter say the businesses have little choice but to make tax payments in cash.
Marijuana dispensary Allgreens LLC of Denver is challenging the IRS practice of fining cash payment with a lawsuit in U.S. Tax Court.
- Proposal For Denver’s First Marijuana Club Takes Early Steps
- ‘I Drive Better When I’m High’: Campaign Highlights Dangers
- Pot Sales Top Liquor Sales In Aspen For First Time
- Ganja Yoga? Entrepreneur Hopes To Open Nation’s First Legal Cannabis Spa In Denver
- Breaking The Grass Ceiling: Women Grow Summit Takes On Pot Industry
- ‘CannaVan’ Takes To The Streets To Study Pot & Health Effects
- Mayor In Colorado Town Opts Out Of Letter To Sessions
- Authorities Raid 3 Illegal Marijuana Grows
(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)