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IRS Continues To Audit And Litigate Against Cannabis Businesses - Tax

Highlights Section 280E of the Internal Revenue Code (Code) prohibits the deduction of business expenses when the trade or business consists of trafficking in controlled substances. As cannabis continues to be legalized and regulated at the state level, marijuana (i.e., cannabis) remains an illegal controlled substance at the federal level subject to the prohibitions of Section 280E. The IRS continues to audit and litigate against businesses trafficking in controlled substances (within the mean...
United States Senate Finance Committee Problems Inc Us Tax Court Internal Revenue Code Controlled Substances Act
Source: mondaq.com

Federal Tax Court Clarifies Cannabis Income Tax Liability | Arent Fox

To embed, copy and paste the code into your website or blog: To change its method of accounting, a taxpayer must receive consent from the IRS and should provide evidence showing the change in business activity, so that the IRS can confirm that the change in method of accounting will accurately reflect income.   While it remains illegal to buy and sell cannabis under the federal Controlled Substances Act, the IRS collects income taxes from cannabis businesses, which largely operate under variou...
United States San Francisco Jeffrey Edmondson Tax Court Richmond Patients Group United States Tax Court

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