Politics

DOJ is secretly using IRS to investigate Colorado pot shops in guise of audits, lawsuit says

The IRS is trying to get its hands on Colorado’s Marijuana Enforcement Tracking Reporting Compliance, or METRC, a system that follows every marijuana plant from seed to sale. The agency wants annual gross sales reports for 2014 and 2015 –but, apparently, also information about customers of Rifle Remedies.

Though properly licensed in Colorado to sell the drug, the companies, in the view of the IRS, are traffickers that violate the federal Controlled Substances Act that lists marijuana as an illegal narcotic. As such, the businesses cannot deduct expenses as other companies can, but before the agency can make that assessment, it must first determine the companies are actually selling pot. Filings in the Rifle Remedies case allege a deeper conspiracy involving at least three federal agencies. Lawyers for the companies did not immediately return messages, but have said in recent court filings they suspect the IRS is overstepping its auditing authority by conducting investigations for the DOJ. They claim the Drug Enforcement Administration has trained tax agents how to investigate drug operations.

Original Article (Denver Post):
DOJ is secretly using IRS to investigate Colorado pot shops in guise of audits, lawsuit says
Artwork Fair Use: Baseball Watcher

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