Part 5 of 5
Banks are reluctant to service marijuana businesses because of federal anti-laundering laws. This means many marijuana growers and retailers must operate their businesses in cash. This makes it difficult for businesses to use government services such as the Electronic Federal Tax Payment System. In July, Sen. Michael Bennet (D-Colo.) and Rep. Ed Perlmutter (D-Colo.) wrote to IRS Commissioner John Koskinen, asking him to stop the agency from penalizing marijuana businesses from paying their employees' withholding taxes in cash (135 DTR G-3, 7/15/14).