Case: Summons for Marijuana Records Allowed (D. Colo.) (IRC §7602)

Summons against marijuana dispensary seeking records from state government agency and banks allowed to proceed, a district court held in denying a motion to quash. IRS agent’s testimony that the investigation of whether taxpayers’ income derives from sale of marijuana is a legitimate purpose in light of the bar on deductions and credits for businesses trafficking in controlled substances under tax code Section 280E, the court determined. Fifth Amendment protection does not apply against records held by a third party, the court concluded. Whether a marijuana business properly reported its gross receipts and allowed deductions for cost of ...