Just a short update.
Last week I wrote about The Green Solution, at least by its own account Colorado’s #1 Marijuana dispensary. It was resisting an IRS summons based on the notion the Code Section 280E, which denies marijuana sellers ordinary and necessary business deductions, inappropriately puts the IRS in the drug busting business. Things did not go well for The Green Solution as the Tenth Circuit ruled that the anti-injunction act applied allowing the IRS to proceed. Now another shoe has dropped.
High Desert Relief Inc is a Non-Profit Licensed Producer for the Medical Cannabis program for the State of New Mexico. High Desert has also been resisting an IRS summons. The US District Court for New Mexico has just told them, that they are done.
Subsequent to the parties’ briefing, on May 2, 2017, our Tenth Circuit issued its decision in Green Solution.2 The Court held that the Anti-Injunction Act deprives federal courts of jurisdiction over Green Solution’s suit to “enjoin the Internal Revenue Service (IRS) and related parties from investigating Green Solution’s business records.” Green