IRS in Washington
A Denver medical marijuana dispensary is seeking immunity from federal drug-law prosecution as the Internal Revenue Service mounts an audit targeting tax compliance.
The IRS is investigating Standing Akimbo‘s 2014 and 2015 tax returns in an audit similar to others launched by the tax agency into Colorado dispensaries. Federal investigators contend Standing Akimbo’s four owners have refused to turn over documents needed to verify the company’s tax liabilities.
The federal agency issued administrative summonses to Colorado’s Marijuana Enforcement Division for data from its seed-to-sale inventory tracking system. California recently selected the same software system to record marijuana shipments and sales in its recreational and medical markets.
Standing Akimbo asked the U.S. District Court for the District of Colorado to block the summonses. On Wednesday, the dispensary’s owners submitted a letter to Colorado IRS agents seeking “absolute immunity” from federal criminal drug laws.
“The evidence you are demanding of the growing/selling of marijuana would be the same evidence that would ‘convict overwhelmingly’ under federal criminal drug laws should this information be shared with the Department of Justice and prosecution