March 12, 2025
A Washington, D.C., marijuana dispensary owner faces 19 charges of failing to pay about $930,000 in federal income and employment taxes for her business Herbal Alternatives II.
The indictment alleges that because Jennifer Brunenkant is the sole owner of Herbal Alternatives the income she earned from the business should have been reported on her annual IRS Form 1040, according to a press release from the U.S. District Attorneys Office for the District of Columbia.
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According to the indictment, Brunenkant failed to file income tax returns and to pay about $800,000 in income taxes between at least 2019 and 2021.
The indictment also alleges that Brunenkant employed dozens of people at Herbal Alternatives and was required to collect and pay about $130,000 in employment taxes to the IRS.
Tax evasion and failure to pay employment taxes each carry a maximum sentence of five years in prison and potential financial penalties.
It was reported last month that Massachusetts cannabis retailer Rebelle owes more than $420,000 in back taxes, prompting the state’s department of revenue to attempt to recover the debt through property seizures.
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Rebelle and two other marijuana businesses – Farnsworth Fine Cannabis and Theory Wellness – filed a lawsuit in March 2024 against the town of Great Barrington over community impact fees levied as part of their host community agreements.
The lawsuit seeks nearly $6 million in damages.
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