The IRS is Preparing for Massive Cash Payments from the Cannabis Industry
The federal prohibition of cannabis creates many problems for those who work in state-legal cannabis industries around the country, whether they are part of a medical or adult use market. One of the biggest problems affecting all cannabis businesses is a lack of banking services – less than 30% of all businesses working in the legal marijuana industry are actually able to obtain a bank account of any kind – which leaves the majority of the industry dealing in cash only.
Since the IRS is required to take any form of legal tender, this generally means that come tax time, they are sifting their way through extremely large sums of cash from these businesses. In the past, not as many medical cannabis businesses would file taxes due to the conflict with state and federal laws, but as the years have gone by more and more have been complying with all state laws and filing their taxes – a way to prove the legitimacy of the growing industry.
This article was originally published in Marijuana Times. Click here to read more.