IRS Moves on Dispensaries

[thingshappening]

Any grower putting large amounts of cash in bank accounts is just asking to be busted. Cash is king.

Agreed, but if you're making enough money to buy "stuff" (houses, anything over 10K requiring forms, etc) you're still in the same vulnerable position.

 

[CalcioErba2004]

This is the thing about a non profit organization...don't do 2 books. You're gonna get nailed hard. Al Capone should be a lesson to all of us for that one. Another is yes a non-profit is legal. Seriously I am not sad at all that this is happening. They are weeding out the crappy drug dealers that are trying to capitalize on the industry and leaving good citizens who actually want to pay taxes around to operate. Audits are not a bad thing. If you got something to hide from the IRS then you should be in trouble IMO. Why would anyone need more than what is needed to live? In Cali if business was good I'd pay myself around 80k to 100k a year. Payroll for employees, rent, utilities, supplies and misc. business expenses there is no reason one should be positive every quarter. If a non-profit is positive, spend it quick. Give the rest to registered charities if you can't spend it. Donate to local homeless shelters. IRS will never knock on your door if you don't give them a reason to...

 

[mrktwiz]

never mind (self edited myself) sometimes it's just best to not speak....<input id="gwProxy" type="hidden"><!--Session data--><input onclick="jsCall();" id="jsProxy" type="hidden">

 

[solabeirtan]

This is the thing about a non profit organization...don't do 2 books. You're gonna get nailed hard. Al Capone should be a lesson to all of us for that one. Another is yes a non-profit is legal. Seriously I am not sad at all that this is happening. They are weeding out the crappy drug dealers that are trying to capitalize on the industry and leaving good citizens who actually want to pay taxes around to operate. Audits are not a bad thing. If you got something to hide from the IRS then you should be in trouble IMO. Why would anyone need more than what is needed to live? In Cali if business was good I'd pay myself around 80k to 100k a year. Payroll for employees, rent, utilities, supplies and misc. business expenses there is no reason one should be positive every quarter. If a non-profit is positive, spend it quick. Give the rest to registered charities if you can't spend it. Donate to local homeless shelters. IRS will never knock on your door if you don't give them a reason to...

Al Capone was an American entrepreneur created by Bible quoting bigots, who thought they might better their World by making every one elses a living Hell.

A futile mistake it was shown to be. However these people came to this Country Ealier on with a Mission, under the guise of Freedom, that lured them in, it was but a Vision that has yet to appear ....

 

[Randybobandy]

Step 1 Open up a club
Step 2 Keep all of the money at home with a book
Step 3 Wait to go to jail

 

[B. Friendly]

this is shitty for those going through it,
but lets look at the bigger picture,
Taxation is one step closer to legalization. shit when the gov't realizes that the flows are worthy of taxation they will take a keener look at federal legalization...

governments need more revenue's and this is a big one. we all know it.

 

[CalcioErba2004]

Al Capone was an American entrepreneur created by Bible quoting bigots, who thought they might better their World by making every one elses a living Hell.

A futile mistake it was shown to be. However these people came to this Country Ealier on with a Mission, under the guise of Freedom, that lured them in, it was but a Vision that has yet to appear ....

I agree so is Freeway Ricky Ross. But the fact of the matter is this. Capone and Ross both delt in illegal trades. Medical Marijuana is not an illegal trade, unless the owners make it illegal. Keeping 2 books and large sums of cash in your house is a big no no, even with legit businesses. The reason I used Capone is because they couldnt nail him on anything except tax evasion and it got him in prison...

 

[thingshappening]

Medical Marijuana is not an illegal trade

Yes it is. Indeed, highly illegal.

 

[CalcioErba2004]

Yes it is. Indeed, highly illegal.

Then why are there non profit corporations incorporated in the state of California that have legal seller's permits to operate in the state of California? There are ways around getting busted by the feds. I guess I should rephrase it to "in the state of California it is legal to own and operate a medical marijuana dispensary." Keep your shit right and the IRS won't do shit. The DEA may still rip you off and ruin your life but thats what lawyers are for. Even other industries have lawyers to keep their money safe.

There are places that have been operating here in my area since 2005 with no shut downs or raids.

 

[thingshappening]

Then why are there non profit corporations incorporated in the state of California that have legal seller's permits to operate in the state of California? There are ways around getting busted by the feds. I guess I should rephrase it to "in the state of California it is legal to own and operate a medical marijuana dispensary." Keep your shit right and the IRS won't do shit. The DEA may still rip you off and ruin your life but thats what lawyers are for. Even other industries have lawyers to keep their money safe.

There are places that have been operating here in my area since 2005 with no shut downs or raids.

I'm not saying you can't play the game. I'm just saying it's highly illegal to do so.

 

[solabeirtan]

I agree so is Freeway Ricky Ross. But the fact of the matter is this. Capone and Ross both delt in illegal trades. Medical Marijuana is not an illegal trade, unless the owners make it illegal. Keeping 2 books and large sums of cash in your house is a big no no, even with legit businesses. The reason I used Capone is because they couldnt nail him on anything except tax evasion and it got him in prison...

Yes, the similarities are there, although they both were " doing for mankind, what mankind wanted done. "

Not that Familiar with FRR but the big diff other than FRR is alive, served 13 Years of a Life Sentence, model prisoner, etc...

Alfonso was a vain, murderous, cold, killer who tried to put himself above the Law. Nobody likes killers ! Peace ...

 

[BlindDate]

Wall Street will bilk billions and destroy the country, but hey, lets go after those little marijuana guys.

 

[Bobo Bolinsky]

To the IRS, you are not a legitimate business, California or any other state. Since this thread started, Harborside is not alone in being audited. It is also in Ore. Business deductions are NOT ALLOWED according to these folks. You cannot win with these morons by keeping honest books, they will hit you big time for back taxes and penalties. No business expense deductions allowed.
The ONLY near term hope to end this Police State bullhit is to demand MMJ be re-classified. Schedule III is where it should be, take the Feds out of this Medicine.