Marijuana Industry Suit Over IRS Summonses Faulty, U.S. Says

The U.S. Supreme Court shouldn’t hear a case brought by Colorado marijuana companies who are trying to block IRS records demands because a lower court’s ruling doesn’t conflict with the high court’s past decisions, the federal government argued in a brief.

The Monday brief responds to a request for Supreme Court review brought by marijuana dispensaries and dispensary owners, who argue that the IRS doesn’t have the authority to decide whether their behavior is barred by the Controlled Substances Act. That question is tied to the IRS’s investigation into whether the companies violated tax code Section 280E, which ...