No Relief for Medical Marijuana Dispensary in IRS Investigation

March 5, 2019, 6:53 PM

Summonses issued to a medical marijuana dispensary by the IRS in an investigation of improper business deductions were valid, the Tenth Circuit ruled March 5.

The Internal Revenue Service issued third-party summonses in order to figure out whether High Desert Relief Inc. improperly took business expense deductions. The New Mexico-based dispensary filed a petition in federal district court to quash the summonses but found no relief and appealed the district court’s decision.

The dispensary argued that the summonses were for an improper investigation concerning the Controlled Substances Act. HDR also said enforcement of tax code Section 280E was improper because ...

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