Credit: Lightspring/Shutterstock.com. Legal marijuana law concept. 'Justice Thomas's Statement Is Not Even Dicta': 10th Circuit Rejects Marijuana Dispensary Owners' Reliance on Justice's Comments in Tax Dispute
"But we want to be very clear: We will continue to faithfully apply Gonzales v. Raich unless the Supreme Court instructs us otherwise," concluded Circuit Judge Bobby R. Baldock. "The taxpayers cannot show the IRS lacked a legitimate purpose based on Justice Thomas's statement."
February 01, 2023 at 05:31 PM
7 minute read
The original version of this story was published on Law.com
The U.S. Court of Appeals for the Tenth Circuit has sided with the Internal Revenue Service over access to third-party held information in audits of licensed Colorado marijuana dispensaries and rejected the taxpayers' reliance on Justice Clarence Thomas' nonprecedential statement doubting the integrity of Gonzales v. Raich as supplemental authority.
According to the opinion, Standing Akimbo is a Colorado-licensed marijuana dispensary owned by Spencer Kirson, Samantha Murphy and John Murphy. The IRS began investigating the dispensary and its owners "to determine if they had taken deductions in violation of U.S.C. § 280E." IRS code prohibits deductions for business expenses if that business consists of trafficking in controlled substances.
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