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Marijuana Industry Faces Challenging Tax Regime

Just because your business isn’t federally legal, doesn’t mean it is not taxable

The Tenth Circuit had bad news for most of the state legal pot industry in its recent decision-Alpenglow Botanicals LLC.  Some of the service providers to the industry might not be that disappointed, though.  That is probably a reflection of Reilly’s Third Law of Tax Practice – Any reasonably complex tax matter involving significant dollars, regardless of whatever else it might be, is a white collar jobs program.  As is common, the story behind the story is more interesting than the decision in itself, but we should tackle the decision first.

About Alpenglow

Alpenglow Botanicals runs marijuana dispensaries

Alpenglow Premium Cannabis provides the only “Farm to Flame” experience in Summit County, Co.  We strive to produce the highest quality product and make it available at the best prices.  Over 30 strains are locally grown and produced in small batches in Breckenridge, Co. at 9600 ft. above sea level and are only available at our two Summit County, Co. locations.  Visit one or both locations to experience the high of 9600ft.

Alpenglow was founded by father and son Charles and Justin Williams.  You can infer from the tax returns that are part of the case record that Charles provided the financing.  Googling will tell you that Justin is more the public face of the company.  At least in the years 2010, 2011 and 2012, which are the subject of the litigation they each owned 50% of the company, which was treated as an S Corporation.  Revenue grew quickly as was pretty common in the industry according to Jim Marty who prepared the tax returns.

 

To Read The Rest Of This Article On Forbes, Click Here

 

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