Sell Cannabis – Fail Paying Taxes – Jail

Sell Cannabis – Fail Paying Taxes – Jail

Sell Cannabis – Fail Paying Taxes – Jail

Matthew Price, part owner and operator of Portland and Eugene medical marijuana dispensaries called Cannabliss, was sentenced Monday to seven months in prison, marking what a prosecutor called the country’s first federal sentencing of a legal marijuana business owner for tax crimes.

Price, 32, pleaded guilty to four counts of willfully failing to file income tax returns, a misdemeanor. He was ordered to pay $262,776 in restitution to the Internal Revenue Service for the tax loss. Copy of Cannabis Pricing – Dispensary Sell Cannabis - Fail Paying Taxes - Jail

Price must turn himself in on Nov. 1.

The court must address a unique question in the case: Can Price continue working in his marijuana business until his surrender or after he completes his prison term? A hearing is set Friday to decide.

The matter arises because using or selling marijuana remains prohibited under federal law and is a standard prohibition during federal supervision.

Sell Cannabis – Fail Paying Taxes – Jail

As he was cheating on his taxes, Price was advising the Oregon Liquor Control Commission on appropriate rules for the state’s recreational marijuana businesses, said Assistant U.S. Attorney Seth Uram.

Oregon lawmakers approved a medical marijuana dispensary registry system in 2012, regulating an already-robust retail market for medical cannabis. Two years later, Oregon voters said yes to recreational marijuana, allowing anyone 21 and older to possess and grow marijuana and creating a taxed and regulated system for retail sales. Oregon issued its first licenses to recreational cannabis retailers in the fall of 2016.

With almost 1,000 new retail marijuana businesses in Oregon “ripe for tax cheating,” the prosecutor urged the judge to send Price to prison for a year and one day to foster tax compliance. A sentence of probation would encourage similar tax cheating in a lightly regulated industry, Uram argued.

“Cash-intensive businesses of all kinds are notoriously susceptible to tax cheating, and Oregon’s retail marijuana businesses are no different,” he wrote in a sentencing memo. “The court should not forego an opportunity to deter tax cheating by state-legal marijuana business owners who are going to wake up the day after Price’s sentencing hearing, read an article about his sentence, and decide what to do next April 15.”

Sell Cannabis – Fail Paying Taxes – Jail

Price failed to report nearly $1 million of income and disregarded advice from three different certified public accountants who for years warned him not to use his business money to pay personal expenses, the prosecutor said.

But Price did anyway, spending $67,000 in cash on a sports car, $15,000 in cash on a Rolex watch and other income on tropical vacations, expensive homes and season tickets to the Portland Trail Blazers, Uram said.

Sell Cannabis – Fail Paying Taxes – Jail

Author: abizcannabis

Managing Director & CEO of integrated transactional financial advisory, tax, and technology consulting firm - aBIZinaBOX Inc New York, Chicago, and OaklandCPA.CITP.CISM.CGEIT.CGMAExpertise with: Alt. Investments/Private Equity, Real Estate, Professional Services, CA Cannabis, Tech Start-Ups and Distressed Assets/DebtTechnology Certifications including:Advanced & High Complexity Cloud Integrator AICPA PCPS, CAQ,, IMTA, CITP ISACA CGEIT, CISMState CPA Societies in California, Florida, Illinois, New York and TexasExpertise with Regulatory Compliance - US - HIPAA, FINRA, SEC Rule 17(a)(3)/(4), eDiscovery, FINCEN - EU- EBA, ESMA, EIOPA UK - BoE, PRA, FCA