Date: March 6, 2025
Contact: newsroom@ci.irs.gov
WASHINGTON — Jennifer Brunenkant of Washington, D.C., was charged today in a 19-count indictment unsealed in U.S. District Court with evading and failing to pay federal income and employment taxes associated with her business Herbal Alternatives II, LLC, which at all relevant times operated a marijuana dispensary that was licensed in the District of Columbia. The indictment was announced by U.S. Attorney Edward R. Martin Jr., and Executive Special Agent in Charge Kareem Carter Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Office.
According to the indictment, Brunenkant owned and operated Herbal Alternatives in the District from at least 2013 to 2021. During that time, Herbal Alternatives generated millions of dollars in revenue. The indictment alleges that because Herbal Alternatives was a sole proprietorship with Brunenkant as the sole owner, the income that Brunenkant earned from Herbal Alternatives should have been reported on her annual IRS Form 1040, U.S. Individual Income Tax Return, that was used by United States taxpayers to file individual income tax returns. It is alleged that instead of filing her federal income tax returns, from at least tax years 2018 to 2021, Brunenkant failed to make an income tax return and to pay income tax to the IRS, and in fact willfully attempted to evade and defeat the income tax due and owing by her to the United States. During those years, Brunenkant failed to pay approximately $800,000 in federal income taxes.
The indictment further alleges that Brunenkant employed dozens of employees at Herbal Alternatives. Under federal tax laws, Brunenkant was required to collect, account for, and pay over to the IRS on behalf of Herbal Alternatives the employment taxes imposed on its employees by the Internal Revenue Code. According to the indictment, Brunenkant failed to pay over to the IRS approximately $130,000 in such employment taxes that were owed during the charged tax years.
Tax evasion and failure to pay over employment taxes each carry a statutory maximum sentence of five years in prison. The charges also carry potential financial penalties. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by IRS-CI. Assistant U.S. Attorney for the District of Columbia Brian Kelly is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 14 attaché posts abroad.