A federal appeals court on Tuesday again upheld the U.S. Internal Revenue Service’s authority to audit state-licensed marijuana dispensaries, rejecting a New Mexico outlet’s argument that the tax agency is acting as a surrogate for criminal prosecutors.

The U.S. Court of Appeals for the Tenth Circuit affirmed two district court rulings refusing High Desert Relief Inc.’s request to quash IRS summonses seeking records from the dispensary’s banks, its local utility and New Mexico’s medical marijuana regulator. A unanimous three-judge panel found the tax agency acted in good faith in pursuing audits of High Desert Relief’s 2014 and 2015 tax filings.

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