IRS Hits Oakland Pot Shop With $2.4M Tax Bill

[Jacob Bell]

San Francisco, CA. – The federal government has found a new weapon in its war on marijuana – the tax man.

The founder of a major San Francisco Bay area medical marijuana dispensary said Tuesday he has been hit with a $2.4 million tax bill following an Internal Revenue Service audit of Harborside Health Center's income tax returns from 2007 and 2008.

The back taxes, penalties and interest resulted from an IRS determination that a tax code prohibiting cost deductions for businesses that traffic in illegal drugs applies to Oakland-based Harborside.

Harborside CEO Steve DeAngelo says the deductions the IRS disallowed includes standard operating costs such as rent, payroll, employee health insurance and licensing fees.

Government auditors did not dispute that Harborside had properly deducted its biggest expense – the millions it spent buying marijuana to sell.

An IRS spokesman says the agency does not comment on individual audits.

News Hawk- Jacob Ebel 420 MAGAZINE
Source: seattlepi.com
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Website: IRS hits Oakland pot shop with $2.4M tax bill

 

[ilynnboy]

"You can't sell it, but if you do we want our tax money"
The IRS is the feds big gun.
Look out they're scared now.

 

[Smoke2Js]

Harborside Health Center is on the front line of research into the benefits of marijuana's many compounds. They are a big target with a big voice. The voice of reason. I am not surprised that the IRS ,our governments lapdog, is harassing them. I have been there ,and I would really hate my government more if they closed because of this.

 

[Bonehead]

Harborside Health Center is on the front line of research into the benefits of marijuana's many compounds. They are a big target with a big voice. The voice of reason. I am not surprised that the IRS ,our governments lapdog, is harassing them. I have been there ,and I would really hate my government more if they closed because of this.

HHC has doctors on staff???

 

[GanjaAL2]

So let me get this straight... they consider MMJ a federal offense... yet the federally ran IRS want what they consider illegal funds....???? I just don't get it.

 

[Smoke2Js]

HHC has doctors on staff???

don't see how you got that from what I typed. go to their website and read.

 

[AcesFull]

They make 2.4MM in a week. They'll pay it and it'll be business as usual. No big deal.

The real problem is 'what's next?'.

 

[GanjaAL2]

They make 2.4MM in a week. They'll pay it and it'll be business as usual. No big deal.

The real problem is 'what's next?'.

Not sure about that one. Latest news is... the feds are calling for the dispensaries to shut down. Not sure if this one is on the list but I would think so. Party up north... smoke'em if you got them!

 

[AcesFull]

Latest news is... the feds are calling for the dispensaries to shut down.

Just saw that on AP. Jacob should be posting it soon I think. I guess that's 'what's next'.

 

[Bonehead]

Not sure about that one. Latest news is... the feds are calling for the dispensaries to shut down. Not sure if this one is on the list but I would think so. Party up north... smoke'em if you got them!

A California court has ordered the closure of 11-16 collective in the city of San Diego and the Fed. Gov't is backing the court by sending threatening letters to landlords and operators. The Fed's letter talks about prosecution and property forfeiture. I believe this is where this story is from. There not enough law enforcement to shut down all the collectives in california.

 

[Jacob Bell]

Just saw that on AP. Jacob should be posting it soon I think. I guess that's 'what's next'.

Yep, it's news time and I will get the newest developments posted

 

[GanjaAL2]

What got the attention of all these agencies is 1. Lack of clear language in the current MMJ bills about distribution 2. GREED

Just my .02

 

[GanjaAL2]

A California court has ordered the closure of 11-16 collective in the city of San Diego and the Fed. Gov't is backing the court by sending threatening letters to landlords and operators. The Fed's letter talks about prosecution and property forfeiture. I believe this is where this story is from. There not enough law enforcement to shut down all the collectives in california.

LOL... wait and see... they will pull agents out of their ass if needed. I can see the feds taking over Ca. if they wanted to... and the sheep will fall in line. People need to wake up and hold these elected officials liable and accountable or we as a community are in for a rude awakening. Until we hit the feds at their own game... the polls... I feel dark times a coming!

 

[Bonehead]

LOL... wait and see... they will pull agents out of their ass if needed. I can see the feds taking over Ca. if they wanted to... and the sheep will fall in line. People need to wake up and hold these elected officials liable and accountable or we as a community are in for a rude awakening. Until we hit the feds at their own game... the polls... I feel dark times a coming!

Don't know what you are waiting to see. I was just commenting on where the story may have come from. That's why I used the phrase "I believe". You are the one making predictions. If this is the Fed Gov't calling us out, it is nothing new. They have made these statements before. Yeah, let's wait and see.

 

[Icemud]

They should respond saying, "well, gman, I'd love to write you a check but for some reason or another, the banks wont take my deposit...so I guess your shit out of luck until someone ok's banks to take medical marijuana business funds...until then...here's an IOU..." lmao....

Sounds like such extortion!!! BS....Someone should start a credit union for medical marijuana clubs, patients, and associates...then, no single person is liable for "conspiring" or "money laundering" because it will be a sea of bodies to persecute!!! As well as it will show the banks, there losing money and investment opportunities...therefore, maybe they will bail us out for change!!!!

We live in a fucked up world with a fucked up government,....while there snortin lines of stripper assholes....were just trying to medicate our ailments....and were the ones with the problems???? wow

 

[Jacob Bell]

My two cents worth: The government is running scared and blind. They know they are losing the war against the legalization of Cannabis, and it scares them to death. When they no longer have the "right" to imprison people for a harmless plant, there goes the PIC and the DEA. The prison system, the legal system, the DEA, and others are built upon the war against Cannabis. When suddenly Cannabis is legal across the board, what will they do? Jobs will be lost, and big pharma will be put out to pasture, where they belong. So of course they are fighting to keep their greedy pockets lined with cold hard cash.

If ever there was a time for us to band together as a united front, that time is NOW. It's not the time to argue amongst ourselves, but rather to bring our minds into focus and stand up for our rights as humans. We have every right to consume Cannabis, we know it, and they know it. Let's not let them divide us, rather, let's unite as a whole and peacefully bring this war to their front door and end it, victorious.

 

[GanjaAL2]

Don't know what you are waiting to see. I was just commenting on where the story may have come from. That's why I used the phrase "I believe". You are the one making predictions. If this is the Fed Gov't calling us out, it is nothing new. They have made these statements before. Yeah, let's wait and see.

They will do what every it takes to protect their cash cow is what I meant. Again... they will lead the blind in an all out assult against the MMJ community. I in my .02 believe this is the beginning. But again... just my opinion and we all know how opinions go...LOL

 

[TorturedSoul]

If you have to pay that bill, pay it in pennies. How much does 240,000,000 pennies weigh? A lot.

 

[AcesFull]

It's not the time to argue amongst ourselves, but rather to bring our minds into focus and stand up for our rights as humans.

This is the absolute truth. I was forced out of my job as a professional online poker player April 15th (Black Friday) when the feds shut down online poker in this great free nation of ours. It happened in a second. Bam! Over! Lives of pros all across the nation ruined overnight.

It can happen. It has happened. It will happen again. Medical Marijuana Patients have a lot in common with Professional Online Poker Players when it comes to freedoms we should have as HUMAN BEINGS. The problem is we can't get enough of either community to stand up and be heard.

It's time to throw a fit. Maybe the two oppressed communities can band together in one front for FREEDOM.

Just saying.............

 

[getright]

This is the absolute truth. I was forced out of my job as a professional online poker player April 15th (Black Friday) when the feds shut down online poker in this great free nation of ours. It happened in a second. Bam! Over! Lives of pros all across the nation ruined overnight.

It can happen. It has happened. It will happen again. Medical Marijuana Patients have a lot in common with Professional Online Poker Players when it comes to freedoms we should have as HUMAN BEINGS. The problem is we can't get enough of either community to stand up and be heard.

It's time to throw a fit. Maybe the two oppressed communities can band together in one front for FREEDOM.

Just saying.............

Full tilt along with others were shut down cause they were ponzi schemes.
Poker and mmj have nothing in common.