12 May 2017

The Tenth Circuit Court essentially says get used to it like everybody else. Good detailed piece from Forbes and definitely worth more than a peruse and especially if you are CO based

Here’s the precis

Green Solution seems to think that like other arms of the federal government, the IRS should be fighting tax crime elsewhere.

Green Solution sued the IRS and related parties in the United States District Court for the District of Colorado, seeking to enjoin the IRS from investigating whether it trafficked in a controlled substance in violation of federal law, and seeking a declaratory judgment that the IRS is acting outside its statutory authority when it makes findings that a taxpayer has trafficked in a controlled substance. Green Solution claimed it would suffer irreparable harm if the IRS were allowed to continue its investigation because a denial of deductions would (1) deprive it of income, (2) constitute a penalty that would effect a forfeiture of all of its income and capital, and (3) violate its Fifth Amendment rights.

The IRS argued the suit should be dismissed because of the Anti-Injunction Act which bars suits “for the purpose of restraining the assessment or collection of any tax”.  The idea is that you fight the IRS in court after they have sent you a bill.

 

Full story at

https://www.forbes.com/sites/peterjreilly/2017/05/09/marijuana-retailer-not-protected-from-irs-summons/#31d83832a09e