A marijuana dispensary operator sued the IRS to challenge nearly $1.6 million in tax deficiencies and penalties, arguing federal marijuana rescheduling eliminates prior restrictions on business deductions.
Terra Herbal Health LLC filed in the US Tax Court after the IRS assessed more than $992,000 in deficiencies and $581,000 in penalties for its 2019 and 2020 tax years. The company operates medical and adult-use marijuana dispensaries in Marion, Ill., under state licenses issued by the Illinois Department of Financial and Professional Regulation, according to the June 30 petition.
The IRS wrongly disallowed several million dollars Terra Herbal claimed in business …
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