the republic logo

Sen. Bennet, Rep. Perlmutter ask IRS to waive fines on pot businesses for paying taxes in cash

Share/Save/Bookmark

DENVER — 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.

Think your friends should see this? Share it with them!

All comments are moderated before posting. Your email address must be verified with Disqus in order for your comment to appear.
View our commenting guidelines and FAQ's here.

Story copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


All content copyright ©2014 The Republic, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.