Article Posted on 09/13/2019
The IRS ruled that a nonprofit that helps low-income taxpayers afford medical cannabis isn’t tax-exempt. The organization was set up to provide funds to patients with proven financial need to help them offset the cost of cannabis-derived medications. The patients must also meet the state requirements to legally obtain the products. However, because federal law generally prohibits the use and distribution of cannabis, the Revenue Service ruled that the nonprofit serves a substantial nonexempt purpose.
Meanwhile, The Satanic Temple in Salem, Mass., is now a tax-exempt church. According to a press release issued by the organization, IRS approved its application to be recognized as a church in part because of the organization’s set of tenets, its regular congregation and religious services, and its established headquarters. Among other favorable tax treatment, churches needn’t file an annual Form 990.