Christian Canna Care Takes on IRS
function share_this(num) {
 tit=encodeURIComponent('Christian Canna Care Takes on IRS');
 site = new Array(5);
 return false;

Christian Canna Care Takes on IRS
Posted by CN Staff on February 19, 2014 at 11:41:36 PT
By Katy Steinmetz 
Source: Time
California -- At Lanette Davies’ shop in Sacramento, everyone stops what they’re doing at 6 p.m. Some patrons come especially for this moment in the day, while others just happen to be there. “We have prayer every night, for our community and our patients,” she says. And those patients are all taking at least one of the same prescriptions: medical marijuana. Her shop, Canna Care, is a “Christian-based dispensary,” where the owners believe in both the powers of Christ and cannabis.
The not-for-profit dispensary has a rare mix of messages, but it might also be on the verge of setting a new precedent for the marijuana industry. On Feb. 24, Davies and her husband Bryan will face the Internal Revenue Service in tax court over disputes about business deductions. A ruling in their favor could help pull dispensaries like hers out of a legal limbo—in which states view them as legitimate businesses but the IRS continues to view them as aiding in drug trafficking.Federal law defines pot as a controlled substance, and that is the law that the IRS follows, even after 20 states and Washington, D.C., have legalized medical marijuana. “The tax law is grossly unfair,” says San Francisco-based tax attorney Robert Wood, who has written extensively about the issue. “Whether you think dispensaries are a good idea or not, if they’re lawful businesses under state law, they should be able to deduct their business expenses like anybody else.”So far, courts have ruled that dispensaries can’t do that. Businesses like Canna Care aren’t eligible for what would normally be routine deductions like payroll expenses and rent, because of a section of the federal tax code known as 280E, which dates back to 1982—more than a decade before California became the first state to legalize medical marijuana in 1996. When Davies’ filed her taxes in 2006, 2007 and 2008, she listed $2.6 million in such deductions. The IRS, which has repeatedly pursued dispensaries using that section of the code, came knocking with an audit in 2012 and refused to accept those deductions, levying a nearly $875,000 penalty on Canna Care.As it has with other dispensaries, the IRS offered to settled the case for about $100,000, Davies says, but she refused on principle. “I could have settled this and walked,” she says, “but it would have morally and ethically wrong to do so.” Davies believes her company is being unfairly targeted while providing a valuable service for people with serious ailments, including her husband and daughter, she says (her husband’s chronic arthritis converted them on the subject of cannabis).The IRS declined to comment.Courts have issued rulings that suggest dispensaries are eligible for some tax credits. In 2007, a California judge ruled that if a medical marijuana dispensary also provides extensive care-giving services, the owner may treat those businesses as separate for tax purposes. In a 2012 case, another California judge affirmed that a dispensary could deduct the cost of goods sold—i.e. the cost of the marijuana. The tax code, the judge ruled, “disallows deductions only for an expense of a business,” like providing health care plans for employees or advertising or legal services, and that does not include product. In this case, the IRS allowed Canna Care to deduct the cost of its marijuana, too.While Wood sides with the Davies’ in spirit and says “it’s an appealing argument” that dispensaries legal under state law should be taxed like any other business, he says Congress, not the courts, will likely have to make that clarification in the tax code. “What the tax court has done is make sympathetic noises but act as if their hands are tied,” he says.Davies remains hopeful. “It’s in God’s hands now,” she says.Source: Time Magazine (US)Author: Katy SteinmetzPublished: February 19, 2014Copyright: 2014 Time Inc.Contact: letters time.comWebsite:  Medical Marijuana Archives 
Home Comment Email Register Recent Comments Help 

Comment #2 posted by Garry Minor on February 19, 2014 at 20:08:37 PT:
HempWorld! You're most certainly, .... correct!
Huff post: Holy Cannabis: The Bible Tells Us So"The ancients had no problem using this plant along with other healing herbs and medicinal plants. Perhaps it was because of its many potentially healing properties that they chose to invest this particular plant with holiness by blending it into the sacred oil.If we value rather than vilify the healing power of this versatile plant, we can improve our world by making it a more compassionate, just, and holy place.".......................The biblical roots of Jews and marijuana - Jewish World FeaturesIsrael News - Haaretz Israeli News source“Science aside, the greatest of medications allow the Infinite to penetrate the inner workings of the body and soul,” he explained. “This is likely the overriding benefit that cannabis provides, and probably why it has so many different healing properties.”True is True!The leaves of the Tree are for the healing of nations.
[ Post Comment ]

Comment #1 posted by HempWorld on February 19, 2014 at 12:52:43 PT
We Are On A Mission From God!
Rocky beware!
On A Mission From God!
[ Post Comment ]

Post Comment