The U.S. Attorney’s Office in the District of Columbia (USAO), reports that the former owner of a Washington, D.C., medical cannabis dispensary pleaded to federal tax evasion allegations on May 13, 2013.
Jennifer Brunenkant, 68, who founded Alternatives herbalesThe USAO reported that the woman admitted she had failed to pay income tax and employment taxes relating to her personal income, as well the income of the dispensary, from the tax years 2017 through 2021. Internal Revenue Service Criminal Investigations unit looked into the case.
Brunenkant’s sentencing hearing, scheduled to take place on November 20, 2025, will see the government seeking restitution of more than $1.2million. Final sentence is determined by U.S. Court of District Judge Loren L. AliKhan.
“Brunenkant further attempted to evade paying those taxes by falsely attesting on her annual Unincorporated Business Franchise Tax Forms, filed in the District of Columbia, that she had filed her federal income tax returns—when in fact she had not,” according to a Release USAO. “Brunenkant tried to hide her identity when, during an interview with law enforcement in July 2023, she told them repeatedly that she’d filed tax returns.
Herbal Alternatives is the only female-owned and Washingtonian dispensary that sells marijuana to adults and medical patients.
The district approved the medical marijuana legalization in 1998. However, the federal rider spearheaded the former Georgia congressman Bob Barr prevented city officials to use federal funds for the implementation of the program until the rider had been lifted in 2009.
Brunenkant pleads guilty this week after having been convicted in the past. Charges On March 6, a 19 count indictment was filed in relation to an IRS investigation.
Brunenkant, according to the Indictment, was the only owner of Herbal Alternatives between 2013 and 2021. This period saw the dispensary generate millions in revenue. Brunenkant should have reported the income she earned at Herbal Alternatives on Form 1040 of her IRS, U.S. The USAO states that Individual Income Tax return is required.
Indictment claims that the woman failed to pay her income taxes and did not make any payments to the IRS.
According to USAO, “the indictment also alleges Brunenkant hired dozens of Herbal Alternatives employees.” Brunenkant had to pay the Internal Revenue Code employment tax on behalf Herbal Alternatives to the IRS under federal law. Brunenkant was indicted for failing to pay the IRS $130,000 of such employment tax owed by Herbal Alternatives during the relevant tax years.
While U.S. traditional companies may deduct business expenses such as salaries from federal taxes, cannabis businesses are subject to Section 280E. This is a punitive structure of taxation for the drug trafficking of Schedule I and II drugs under the Controlled Substances Act. The federal government receives billions of dollars in taxes each year from cannabis companies that it doesn’t recognize as legal.
For those who fail to pay the employment tax and evade income taxes, a maximum five-year prison term is imposed for each offenders in addition to monetary penalties.
According to the U.S. Attorney’s Office for District of Columbia, the former owner of a Washington, D.C. medical cannabis dispensary pleaded guilty to charges of federal tax evasion on May 13.
Jennifer Brunenkant, 68, who founded Alternatives herbalesThe USAO reported that the woman admitted she had failed to pay income tax and employment taxes relating to her dispensary as well personal income between 2017 and 2021. Internal Revenue Service Criminal Investigations unit looked into the case.
Brunenkant’s sentencing hearing, scheduled to take place on November 20, 2025, will see the government seeking more than $1.2m in restitution. Final sentence is determined by U.S. Court of District Judge Loren L. AliKhan.
“Brunenkant further attempted to evade paying those taxes by falsely attesting on her annual Unincorporated Business Franchise Tax Forms, filed in the District of Columbia, that she had filed her federal income tax returns—when in fact she had not,” according to a Release USAO. “Brunenkant was trying to avoid detection by repeatedly telling law enforcement officers during a 2023 July interview that she filed her tax returns.”
Herbal Alternatives is the only female-owned and Washingtonian dispensary that sells marijuana to adults and medical patients.
However, even though the District’s voters approved medical cannabis legalization measures in 1998 a federal riding led by ex-Congressman Bob Barr in Georgia prevented the city from using federal funding to implement the program before the rider lifted in 2009
Brunenkant pleads guilty this week after having been convicted in the past. Charges On March 6, a 19 count indictment was filed in relation to an IRS investigation.
Brunenkant, according to the Indictment, was the only owner of Herbal Alternatives between 2013 and 2021. This period saw the dispensary generate millions in revenue. Brunenkant should have reported the income she earned at Herbal Alternatives on Form 1040 of her IRS, U.S. The USAO states that Individual Income Tax return is required.
The indictment states that she did not file a tax return or pay the IRS for a period of several years.
According to USAO, “the indictment also alleges Brunenkant hired dozens of Herbal Alternatives employees.” Brunenkant had to pay the Internal Revenue Code employment tax on behalf Herbal Alternatives to the IRS under federal law. Brunenkant was indicted for failing to pay the IRS $130,000 of such employment tax owed by Herbal Alternatives during the relevant tax years.
The Internal Revenue Code’s Section 280E imposes a punishing tax on cannabis businesses for drug trafficking Schedule I and II drugs under the Controlled Substances Act. The federal government receives billions of dollars in taxes each year from cannabis companies that it doesn’t recognize as legal.
In addition to the financial penalties, those who do not pay their employment taxes or evade taxation face maximum sentences of up to five years in prison for each offence.
Cannabis Law Resources in Poland
Browse essential legal pages on cannabis sales and cultivation in Poland. These guides will help you understand the legal requirements, such as certifications, permits, and compliance.
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Polish News Registration and Interests of Cannabis Businesses
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Permissions for Cannabis Sales in Poland
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Authorization for Importing or Manufacturing Medical Products
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Permission for Manufacturing or Importing Medical Products
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Certificate of Good Manufacturing Practices (GMP)
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Registration of Medical Products in Poland