Former IRS Attorney Warns of Upcoming ‘Tsunami’ of Cannabis-Related 280E Audits
A tax expert who spent six years as an IRS trial lawyer is sounding a new 280E alarm bell that many cannabis businesses might need to answer soon. Nick Richards, a Denver-based tax attorney who now works in the private sector with a clientele that includes marijuana firms, is calling attention to changes in IRS policy that he believes will lead to a “tsunami” of audits that could cost larger cannabis businesses millions in unpaid taxes and penalties. And the change in policy could mean probable 280E audits for ancillary management companies, including leasing companies, landlords or others that may profit directly from cannabis sales. Tax Court losses Under Section 280E of the IRS tax code, marijuana businesses are barred from taking federal tax deductions. Richards said he learned of the policy changes directly from IRS staffers he keeps in touch with, and those policies resulted from two specific 2018 U.S. Tax Court cases and the expansion of a marijuana industry-auditing project begun by the IRS in Colorado: To Read The Rest Of This Article By John Schroyer on Marijuana Business Daily Click Here Published: October 16, 2019 LA Cannabis NewsFounder & Interim Editor of L.A. Cannabis News http://www.lacannabisnews.comThe post Former IRS Attorney Warns of Upcoming ‘Tsunami’ of Cannabis-Related 280E Audits appeared first on L.A. Cannabis News.
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