IRS could collect taxes from cannabis firms if they used big banks, Yellen says

Treasury Secretary Janet Yellen said she supports allowing legal cannabis dispensaries to access the US banking system — where they’re now largely barred — to make it easier for the government to collect tax revenue.

Yellen was asked by Colorado Congressman Ed Perlmutter of the House Financial Services Committee on Wednesday if she thought allowing pot firms to use the US banks would facilitate tax collection by the IRS.

“Yes, of course it would,” the Treasury secretary replied.

Large banks have been lobbying lawmakers to support the Secure and Fair Enforcement Banking Act, or SAFE, which would enable banks to access the burgeoning multi-billion dollar cannabis industry.

While the sale or use of marijuana is legal to some degree in 47 states and DC, federal law still prohibits possessing, buying, selling, and using marijuana, which remains classified as a Schedule 1 drug by the Drug Enforcement Agency.

Big banks have been hesitant to do business with legitimate cannabis-based companies for fear of running afoul of federal money-laundering laws. Financial institutions found to have violated money-laundering laws risk having their assets seized and losing their master account with the Federal Reserve.

Read more at    https://nypost.com/2021/12/01/irs-could-collect-taxes-from-pot-firms-with-big-bank-use-janet-yellen/?utm_medium=email&utm_source=newsletter&utm_campaign=MJD_20211202_NEWS_Daily

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