Alternative Health Care Advocates v. Commissioner

151 T.C. No. 13

UNITED STATES TAX COURT ALTERNATIVE HEALTH CARE ADVOCATES, ET AL.,1 Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket Nos. 16123-14, 30186-14, Filed December 20, 2018. 8813-15, 8850-15, 8852-15, 12321-15. In these consolidated cases C, a corporation, operates a medical marijuana dispensary in California. Other Ps were individual shareholders of S, an S corporation that was organized to handle daily operations for C including paying employee wages and salaries. C deducted I.R.C. sec. 162 business expenses and later adjusted COGS to include indirect expenses per…