Yet another idiot doing taxes

[LewisLegion]

Growing said product is still illegal on the Federal level; state laws cannot supercede that. It's just that the Feds have more-or-less agreed to let it slide in states where it has been legalized on the state/local level (put simply, they have bigger fish to fry). There have been cases where a grower of Medicinal "product" did an interview on the local news, without making any attempt to disguise his face or location, and was almost immediately busted/raided by the Feds (arguably as much for his own stupidity as anything else). If a future drug czar decides to actually start enforcing those laws again, I'm afraid all of those shopkeepers will be in serious hoo-hah, no matter what the states say. The only solution would be to have it legalized on the Federal level -- which is improbable, but not impossible.

Which is a pain in the butt, literally. MJ is legal on a medicinal level in Washington, but I still can't have it (even though THC has been proven as an ENORMOUS help to relieve the type of pain I have) for fear of being busted on a FEDERAL level.

So I'm reduced to taking far stronger and more addictive (and liver damaging) painkillers instead, simply so I don't have to go to jail for managing my pain.

Anyway, enough hijack. Back to your regularly scheduled thread

[Raveni]

So of course we filed it but with notes in the preparers sections. We believe this is an illegal business.

Wait, so you wrote "we believe this is an illegal business" on their tax return? And the guy signs it and you mail it in?

[Dave1982]

Folks, let's take the federal vs state law debate to Fratching and focus on the SC.

[Andara Bledin]

WHO THE HELL TRIES TO CLAIM POT GROWING AND SELLING??????????

Someone who doesn't want the IRS to come after them.

Remember, they nailed Al Capone for tax evasion.

Yup! And he's not the only one.

And, straight from the IRS website:

Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.

Once he's arrested, do you think he can try to claim back some of those taxes seeing as they're helping support his "new home" in public housing?

He won't be arrested based on the tax return. Actually, I'm fairly certain he can't be arrested based on the tax return.

For other stuff, sure, but not based on what he claimed on his taxes.

Besides, tax evasion is a felony, and not a cheap one. There are some illegal activities that carry a much smaller penalty if caught.

And, again from the IRS website:

It is a crime for a contractor or contractor’s employee to knowingly and willfully disclose federal tax returns or return information to someone not authorized to receive it, or to access tax data without a business need to do so (known as UNAX).

So, no matter what a taxpayer puts on their return, or discusses with their preparer, the information is considered confidential, and cannot be disclosed except in certain narrow circumstances.

If not, you can always make an anonymous tip to the police.

I would strongly suggest against anything of the sort:

Civil Penalties:
Under §7431, any taxpayer whose return or
return information has been knowingly or negligently inspected or disclosed by a contractor or contractor’s employee in violation of §6103 may sue for civil damages.
Penalties may include:
• damages of $1,000 for each act of unauthorized access or disclosure, or actual damages sustained, whichever is greater
• punitive damages (in the case of willful or gross negligence)
• costs of the action (which may include attorney’s fees)

Uncle Sam wants your tax money, no matter how you made your income. Enough that they protect the information in your tax return from being turned over to law enforcement without a proper subpoena.

^-.-^

[Der Cute]

IRS you have to say ALL income. Period.
The IRS doesn't care if you grow pot. They just want to know how much money you made.

Hell, I know a drug dealer that filed. Every year. They did not care.

[Shalom]

THC has been proven as an ENORMOUS help to relieve the type of pain I have

If all you need is Δ⁹-THC, it's legally available by prescription in an oral version. Might be worth a try.

(Freaking expensive, though. Even the cheapest generic runs about seven bucks a capsule for the 5mg strength, with the other strengths proportionally priced, and that's what it costs me at the wholesale level. I haven't checked the retail price lately; the drugstore dot com (which is part of Aid of Rite) online price checker shows a retail price of $679.93 for sixty capsules. Better hope your insurance covers it; otherwise it's probably cheaper to buy it in plant form.)

[taxguykarl]

He won't be arrested based on the tax return. Actually, I'm fairly certain he can't be arrested based on the tax return.

Tax returns are confidential, so you're right about that one, Andara.

[AmethystSquirrel]

True! We do have a lot of confidentiality clauses. I re-read them today and there is nothing about disclosing illegal information.

[Sapphire Silk]

If all you need is Δ⁹-THC, it's legally available by prescription in an oral version. Might be worth a try.

Marinol is not particularly effective for some reason. I've known patients who've tried it. They've all said pot is much better.

/highjack

[42_42_42]

Has he been dutifully collecting sales tax on purchases and remitting them to the state/city governments?

[mikoyan29]

WHO THE HELL TRIES TO CLAIM POT GROWING AND SELLING??????????

I assume you don't live in one of the states where medical marijuana is legal, do you?

[Argabarga]

If he was legitimately using it medicinally, he'd declare it as such, not as a "herb and seed" operation, and certainly not with baggies......

[Mytical]

I can do 'simple' taxes easy, but even I am sort of confused about somethings. I've done taxes for H&R block..and I am not even close to knowing everything. If you don't know what you are doing, please leave it to the professionals.

[fireheart]

I'm wondering which one's worse....the brass truck balls or this.

The guy would have a harder time doing it down here, marijuana is illegal full stop.

[Andara Bledin]

While I don't argue that they guy might be an idiot, not declaring his income on his tax return would be much worse than declaring income from an illegal source.

Don't mess with the IRS. They're mean.

^-.-^