from norml.org

"Earlier this week, the Internal Revenue Service (IRS) issued a long-awaited $2.5 million ruling against a major medical cannabis dispensary in California. Citing an obscure part of the US tax code meant to target drug cartels, the federal agency is barring dispensaries, even those licensed under state law, from taking any business-related tax deductions and is seeking millions in dollars in back taxes.
This adverse ruling has the very real potential to stop the regulated sale of cannabis currently underway in California, Colorado, Maine and New Mexico; and planned in Arizona, Montana, Delaware, New Jersey, and Washington, D.C "