Banks in California are feeling the squeeze from the federal government.  Presently, several government agencies are asking banks to report any suspicious activity pertaining to the sale of marihuana.  Instead of complying with the requests, banks have opted to take the easier route and close all accounts of medical marihuana dispensaries.  Further, a recent push by the IRS to audit the books of medical marihuana dispensaries has resulted in an overall denial of business tax deductions.  The federal tax code precludes business deductions to those engaged in activities connected with the manufacture and delivery of drugs listed in Schedule I of the federal Controlled Substances Act.  Marihuana is such a drug.  One dispensary in California plans to fight the IRS in court.  The dispensary would like the court to review whether marihuana should continue to be classified as a Schedule I drug. 

     Other advocacy groups are working with legislators to introduce five new marihuana reform bills.  One proposed bill, the Truth in Trials Act, would make evidence of the medical use of marihuana admissible in federal court.  Others bills include an effort to declassify marihuana from a Schedule I to a Schedule II substance, a federal decriminalization bill, an outright legalization bill, and a bill that would shape the way banks treat dispensaries.  For more information, please read the following article.