The U.S. Courtroom of Appeals for the Tenth Circuit has sided with the Inner Income Service over entry to third-party held data in audits of licensed Colorado marijuana dispensaries and rejected the taxpayers’ reliance on Justice Clarence Thomas’ nonprecedential assertion doubting the integrity of Gonzales v. Raich as supplemental authority.
According to the opinion, Standing Akimbo is a Colorado-licensed marijuana dispensary owned by Spencer Kirson, Samantha Murphy and John Murphy. The IRS started investigating the dispensary and its homeowners “to find out if they’d taken deductions in violation of U.S.C. § 280E.” IRS code prohibits deductions for enterprise bills if that enterprise consists of trafficking in managed substances.
