IRS: Marijuana cash transactions aren’t automatically suspicious
Large cash transactions by marijuana businesses should not automatically be reported as suspicious, according to new IRS guidance.
Large cash transactions by marijuana businesses should not automatically be reported as suspicious, according to new IRS guidance.
As the U.S. Drug Enforcement Administration weighs whether to revise marijuana to a Schedule 3 controlled substance, regulated cannabis producers are looking forward to the prospect of easing their heavy tax burdens under Section 280E of the federal tax code.
Multistate marijuana company Trulieve Cannabis Corp. is seeking a federal tax refund of $143 million, saying it “believes it does not owe” the taxes it paid over three years.
The former owner of a Michigan marijuana store could serve up to nine years in prison after he was found guilty by a federal court of evading income taxes and obstructing the IRS.
Marijuana companies paid more than $1.8 billion in federal taxes in 2022 compared to non-cannabis businesses as a result of U.S. tax treatment of the MJ sector, according to an analysis by industry research firm Whitney Economics.
Make no mistake, the U.S. Internal Revenue Service plays to win. And cannabis companies need to prepare accordingly if they hope to survive federal tax scrutiny.
The IRS has been training its agents for at least eight years in the finer details of auditing marijuana companies, using PowerPoint presentations that outline everything from legal precedents to questions that should be asked during interviews with business owners.
Here are explanations of terminology the IRS uses in relation to marijuana-related tax issues.
A medical cannabis dispensary in Denver lost an appellate court battle to prevent the IRS from obtaining business records from state regulators.