DENVER — The IRS isn’t backing off its demand that a Denver medical marijuana dispensary pay fines for not paying some taxes electronically, even though it can’t find a bank to handle its business.

The Denver Post reported Monday (http://tinyurl.com/q2zecfv) an IRS appeals officer told Allgreens LLC it faces a penalty for paying employee withholding taxes in cash instead of electronically.

It wasn’t immediately clear how big the fines were.

The IRS requires employers to pay the withholding tax by electronic transfer from a bank. Other dispensaries are in the same bind, but Allgreens was the first to challenge the policy in U.S. Tax Court.

Allgreens’ lawyer has filed new court documents saying the decision violates the IRS’ own rules and is unfair to medical marijuana businesses.