The IRS could summon information on marijuana businesses, a U.S. appeals court ruled in one case.
November 24, 2020
The taxpayers owned medical marijuana dispensaries in Colorado, where dispensing marijuana is legal. The IRS issued a series of summons to obtain dispensary records, but the taxpayers didn’t fully comply. They tried to squash the summonses, arguing, among other things, that the IRS already had the information. The court ruled that the IRS was conducting its inquiries for a legitimate purpose because it was investigating federal tax liabilities, reconstructing income, verifying accounting records and substantiating tax returns. (Speidell, CA 10, 10/20/20)