A marijuana business in Colorado has filed a lawsuit against the Internal Revenue Service for assessing a penalty for paying taxes in cash.
The IRS charges a 10 percent penalty on cash payments for federal employee withholding taxes.
Because pot is illegal under federal drug law, marijuana businesses have trouble accessing banking services despite federal guidance earlier this year on how banks may accept pot money.
The Denver Post reports that dispensary Allgreens LLC of Denver is challenging the IRS practice of fining cash payments. The company has filed a petition in U.S. Tax Court.
The IRS says Allgreens owes more than $20,000 in penalties. No hearing date has been set for the petition.