Top IRS Official Says Marijuana Banking Reform Would Help Feds ‘Get Paid’ -
"IRS’s Cassidy Collins talked about the 'special type of collection challenge' that the agency faces when it comes to working with cannabis businesses while the product remains federally illegal."
Why this is important: This article highlights how the ability of the IRS to collect taxes from cannabis businesses is hampered because the product remains outlawed under federal law. Without getting too far in the weeds, it explains while IRS would prefer marijuana businesses to pay taxes electronically, the industry is largely cash-based. Financial institutions fear running afoul of the federal rules governing banking of growers and sellers of cannabis. Trying to facilitate tax payments, the Service has encouraged the business owners to visit IRS assistance centers equipped to accept cash payments in excess of $50,000. It has also had IRS officials accompany cannabis firms to their banks in the hope of obtaining cashier’s checks for payment of taxes. Until legislation allows banks and credit unions to deal with the industry, the IRS’s hope of easy tax collection may be just a pipe dream.
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