Bennet, Perlmutter urge change in pot tax fines

The Associated PressJuly 11, 2014 

— U.S. Sen. Michael Bennet and U.S. Rep. Ed Perlmutter are asking the Internal Revenue Service to waive penalties levied on marijuana businesses for paying taxes in cash.

The IRS charges a 10 percent penalty on cash payments for federal employee withholding taxes. But Bennet and Perlmutter say in the letter Friday to IRS Commissioner John Koskinen that Colorado marijuana businesses "are having extreme difficulties accessing the banking system."

Because pot is illegal under federal drug law, marijuana businesses have trouble accessing banking services despite federal guidance earlier this year on how banks may accept pot money. Bennet and Perlmutter say the businesses have little choice but to make tax payments in cash.

Marijuana dispensary Allgreens LLC of Denver is challenging the IRS practice of fining cash payment with a lawsuit in U.S. Tax Court.

Bradenton Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service