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Summonses from the Internal Revenue Service have given federal tax agents access to Colorado’s seed-to-sale cannabis tracking system, and the businesses responsible for those plants are not pleased.
According to the Denver Post, the IRS has been sifting through the state’s marijuana database in an effort to ensure that Colorado’s ganjapreneurs aren’t claiming deductions on profits made from what is still a federally scheduled narcotic.
Without the tracking data, the IRS would have to rely on canna-businesses admitting that they’re breaking federal law to deny deductions, understandably, that’s not likely to happen.
Almost immediately after the IRS got their hands on the data, Colorado’s cannabis companies started filing petitions in U.S. District Court to kill the summonses and protect their information. At least six cannabis companies have filed petitions, including Silt, Colorado medical marijuana provider Rifle Remedies.
“The IRS wants a situation where on the one hand, a person will not be prosecuted for violating the Controlled Substance Act when selling state-legal marijuana, but, on the other hand, will have their business deductions denied…
