Former IRS agent, Paul G Hurley, resigned after being caught accepting a bribe from a medical marijuana dispensary in exchange for a huge reduction in their audit assessment and is now facing trial on the charges. At least someone at the IRS is held accountable when laws or broken. I wonder if the executives at IRS that were responsible for the targeting scandal will ever be held accountable for their actions.
Most businesses are allowed to deduct the ordinary costs of doing business under IRC § 162. But marijuana dealers are only allowed to deduct expenses related to cost of goods sold. §280E prohibits the deduction for most business expenses for businesses that market a “controlled substance” under Federal law. In the Olive case, all business expenses were disallowed except for those relating to cost of goods sold. On the bright side, some pot advocates are pleased with the generous allowance made by the judge for cost of goods sold.