The Resource Medical marijuana dispensary does not qualify for 501(c)(3) status

Medical marijuana dispensary does not qualify for 501(c)(3) status

Label
Medical marijuana dispensary does not qualify for 501(c)(3) status
Title
Medical marijuana dispensary does not qualify for 501(c)(3) status
Subject
Language
eng
Summary
Ltr. Rul. 202014019 is the Revenue Service's final determination that a corporation's application for tax-exempt status under Section 501(c)(3) did not qualify because it was organized to distribute medical marijuana. Facts: The corporation's Articles of Incorporation state that the corporation is organized to dispense medical cannabis to legally qualified patients. Its bylaws state that it is organized for the charitable and educational purposes of dispensing cannabis medication to qualified patients. Analysis: Section 501(c)(3) provides for the exemption from federal income tax of corporations organized and operated exclusively for charitable or educational purposes, provided no part of the net earnings inures to the benefit of any private shareholder or individual. Implications: It's not surprising that the corporation was denied exempt status by the Service. A further question is whether the corporation could apply for, and receive, exempt status in the state of its operation since cannabis possession and distribution is legal in that state
Citation source
In: Journal of taxation. - New York. - Vol. 132 (2020), no. 6 ; 3 p
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • medical sector
  • tax exempt company
  • charities
  • illegal activity
Label
Medical marijuana dispensary does not qualify for 501(c)(3) status
Instantiates
Publication
Label
Medical marijuana dispensary does not qualify for 501(c)(3) status
Publication

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