Skip to comments.Marijuana is illegal under federal law, should IRS be able to collect taxes on Colorado pot sales?
Posted on 07/05/2014 5:43:33 PM PDT by Libloather
(CNN) Some Colorado marijuana sellers are challenging Uncle Sam. Theyre filing a lawsuit saying the IRS shouldnt be allowed to collect taxes on marijuana sales because marijuana is illegal under federal law.
Attorney Rob Corry says forcing Colorados recreational marijuana businesses to pay violates the United States Constitution.
He has filed a lawsuit in District Court on behalf of clients, some of whom say taxes could be used as evidence in any future prosecution.
Theyre open records and they are admitting to a federal crime. Its still a federal crime to sell marijuana, Corry said.
(Excerpt) Read more at fox6now.com ...
Seems to me that taxation was one of the main selling points of the pro legalization crowd.
I believe you have to declare income on unlawful activities.
if its income you must declare it, illegal or legal. How do you think they put Al C. in jail.
“”if its income you must declare it, illegal or legal. How do you think they put Al C. in jail.””
I was thinking of Al Capone, too.
Even with the Just-Us department's "operation choke point" which targeted "shady" but legal industries, like porn, firearms, and payday loans, Holder ordered his minions NOT to go after the dispensaries, so they could use banks for their funds.
Yet another example of a completely lawless regime.
extortion and robbery are also illegal, but the government still expects taxes to be paid on income from them.
That’s how they got Al Capone - tax evasion.
No, but under current law they could get the shop owners under RICO laws (I think), however with the selective enforcement this isn’t likely.
So how did they get Capone?
Huh? Since when does the law matter to THIS Federal government??
Gotta love the Federal courts. States pass laws contrary to existing Federal drug laws and there is no problem. Let a state try to pass a law that protects even a viable fetus and that law is voided by those ever diligent judges before the ink dries.
“Income” is from whatever source derived
the sellers and attorney must be smoking something or maybe it’s the 39% federal tax rate they don’t like
Heck, the president breaks the law everyday, he still files his taxes, why should his base be any different?
It is fraud not to declare income. It doesn’t matter if its from prostitution, drugs, bank robbery, fraud, bribery, or grifting, it is illegal not to declare it.
So yes, if you are going to sell something illegal that makes people unmotivated, mentally confused, more liable to depression and schizophrenia, and lung cancer, the sellers should pay taxes.
If you declared bankruptcy the IRS will tax you on the money you owed and couldn’t pay saying it’s a monetary gain.
You are required to report ALL income, legal or illegal. That is how they got Dillinger.
I mean Capone.
Not federal taxation.
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