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Rachel Gillette, the head of the Colorado chapter of NORML, is suing the Internal Revenue Service (IRS) because she feels the IRS has been mistreating and discriminating against perfectly legal marijuana businesses.
All Greens LLC is a medical marijuanalocated in Denver, Colorado, and is at the heart of the lawsuit. Gillette is representing All Greens due to a claim made by the IRS that they owe $20,000 in penalties from 2013 alone which she feels is unfair.
All Greens lost their bank account in 2012 as a result of federal regulations which began disapproving of banks that were in business with marijuana companies so they were unable to pay their taxes via the IRS website. In the years leading up to 2012 All Greens was able to use the IRS website because they had a bank account, but when they lost their bank account they had no choice but to hand deliver their payments in cash and in person in Denver.
Gillette explained to the Tax Court that, “It was not that the taxpayer did not want to make use of the Electronic Federal Tax Payment System. Rather the taxpayer is unable to secure a bank account due to the nature of its business. With no bank account and no access to banking services, the taxpayer is simply incapable of making the payments electronically.”
Gillette is facing an uphill battle against the IRS, but is confident everything will get sorted out.