The DOJ may be mellowing on marijuana, but tax attorney Robert Wood says the IRS still has a drug-war mentality:
The reason is that even legal dispensaries are drug traffickers to the feds. And the main culprit is Congress, not the IRS. Section 280E of the tax code denies even legal dispensaries tax deductions.
In the past the IRS has said it has no choice but to enforce the tax code passed by Congress. “The federal tax situation is the biggest threat to businesses and could push the entire industry underground,” the leading trade publication for the marijuana industry reported. … Consider that Harvard Law School offers ‘tax planning for marijuana dealers’ Perhaps this fact suggests that the industry has really arrived. In other respects, though, including tax, banking and credit card processing for patients, the industry is still barely off the ground. And that is doubly disturbing, since the tax law seems an entirely inappropriate way to hinder (if not outright doom) these businesses.
Meanwhile, a glimmer of good news from the GOP last night:
McCain: “Maybe we should legalize. We’re certainly moving that way as far as marijuana is concerned. I respect the will of the people”
— Tim Steller (@senyorreporter) September 5, 2013
The Dish 