Tuesday, October 4, 2011

IRS: Oakland's Largest Pot Dispensary Owes Millions - The Bay Citizen

IRS: Oakland's Largest Pot Dispensary Owes Millions - The Bay Citizen: "Oakland’s Harborside Health Center — the largest medical marijuana dispensary on the West Coast — lost the first round in a high-stakes battle with the Internal Revenue Service that could spell trouble for the booming pot industry.

In a letter to Harborside late last week, the IRS ruled that the dispensary cannot deduct standard business expenses such as payroll and rent, because it is involved in what the agency terms "the trafficking of controlled substances," said Luigi Zamarra, Harborside’s chief financial officer. "

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