Only matters what the IRS has to say about it...business is business and propper business and accounting practices are the same no matter what industry your in. The IRS doens't change the the rules for a bunch of guys that don't want to tell them anything in order to break all current excepted legitimate tax reporting processes by keeping all vendor payments and products recieved annonomous....
Are you starting to see how silly the arguement is yet?
You either report it or your not in compliance, pretty simple in the eyes of the IRS, this is not up for debate, that is how it works.
If you sell to a despensary, get paid cash, with no records or documentation, and don't recieve a 1099, then you and that despensary are part of the problem and can take some credit for the current crackdown....if everyone in the industry where ACTUALLY following the rules and being upstanding citizens in the local business community alot less of this would be an issue....but 99% don't, simple as that.
Ya think the guy at Subway thinks they are playing the same game when he has to account for every penny spent for every pickle in order to get the proper documentation for his tax filings each year and a despensary says, oh yeh by the way we spent 10 million dollars on meds and don't have one shred of paper to show for it, not what we bought, not from who, not for how much...just trust us....right, that'll work
I am just saying, if they want to trumpet from the rooftops that they have followed all the tax rules, you gotta follow them all and not leave out the ones you feel might go against a patients right to privacy.....there is a big difference between a patient and a vendor and there is absolutely no guarantee of privacy for a vendor to a business, in fact there is a requirment for total disclosure for the most part to the IRS. So if your concerned about the government getting your payment info, don't be a vendor and stay a patient where that anonomity is a little more guaranteed.
None of it really matters now though, with the 208 law the IRS is inacting all despensaries are going to just be taxed on their gross sales so it won't really matter how much or what they buy, only number the IRS is concerned with is the final register tickets of gross sales....ouch!!!
Tex