The Colorado medical cannabis dispensary whose challenge of IRS rules led a U.S. Supreme Court justice to question federal marijuana prohibition saw its bid to keep tax records secret rejected in federal court.
The 10th Circuit of Appeals in Denver on Friday affirmed a district court’s ruling that the U.S. Constitution does not protect Standing Akimbo from IRS requests to see the company’s business records, Law 360 reported.
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The Denver-based dispensary has spent several years fighting IRS investigators who suspected the business was improperly claiming business deductions on its taxes in violation of Section 280E of the federal tax code.
Passed by Congress in the mid-1980s, 280E bars marijuana businesses from taking standard business deductions.
In Standing Akimbo’s case, the dispensary tried to block the IRS from accessing Colorado Marijuana Enforcement Division records as part of an audit.
In arguments before the 10th Circuit, Standing
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