The IRS is Reportedly Overwhelmed by Cash Payments from Marijuana Businesses
While all other business in the United States pay their federal taxes by check or electronically, state-legal cannabis businesses pay their taxes in a rather old-timey way. The company schedules an in-person appointment with their local IRS office. When the company representative arrives, they’re shown to a secure space where, in front of two IRS agents who never leave the room, they count out tens or hundreds of thousands of dollars in cash. The yearly, nerve-rattling ritual is well-known to cannabis businesses. And it’s a symptom of the industry’s ongoing cash problem, its inability to access basic banking services due to the federal cannabis prohibition.
The well-documented cash problem facing the cannabis industry hurts companies and consumers in many ways. But according to the IRS, the cash issue is also causing major headaches for the federal government. With cannabis businesses paying billions in taxes with cash, the IRS is reportedly facing a cash problem of its own.
The IRS Is Spending $1.7 Million to Count Cash from Cannabis Industry Taxes