Pot Biz Owner Owes Tax Fraud Penalties, 9th Circ. Affirms

By Theresa Schliep (October 8, 2021, 7:34 PM EDT) -- A tax preparer owes around $103,000 in fraud penalties, as the Ninth Circuit ruled Friday that the U.S. Tax Court was justified in finding he underpaid his marijuana business's taxes, hid income and failed to cooperate with the IRS. 

The Ninth Circuit affirmed the lower court's decision finding that Raymond Chico owes fraud penalties under Internal Revenue Code Section 6663 for 2010 through 2012 for underreporting income from his marijuana cigarette container company, Doobtubes, and other ventures. The Tax Court wasn't wrong to find there was convincing evidence that Chico committed fraud, including his presenting of scant documentation supporting his tax...

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