Well, it is tax day, and a number of us will file our taxes at the last possible minute. And, the questions always arise about what should be declared and what shouldn’t. But, for anyone who sells weed, I doubt that it ever seems logical to declare their pot sales on their taxes (unless it is through legit medical marijuana sales), and that practice has come to haunt a tax preparer in Alaska.
Accounting Today tells the story of Rebecca Renae Powell, a resident of Wasilla, Alaska, which you may remember as being the hometown as Sarah Palin, who has been charged with six counts of preparing false tax returns. Allegedly, Powell began preparing tax returns for a friend who sold marijuana in 2007 and, because the drug income was not reported, Powell’s friend was allegedly able to claim Earned Income Credit from 2003-2007.
The case continues with Powell taking on a client who made money through illicit affairs, selling heroin in addition to cannabis. Not only did Powell allegedly fail to report to drug income, but there was also some falsifying of documents to make it seem as if the income was coming from a legitimate business. In addition, some invoices were allegedly forged.
Powell faces three years in prison and a $250K fine for each count against her. And, I’m not sure there is a lesson to be learned here besides it being a cautionary tale for accountants. For people who actually make their money through the illegal sale of marijuana, you taxed situation is kind of a lose-lose situation
Do you feel bad for the accountants of weed dealers? Did you remember to pay your taxes?