Overview
Cannabis businesses face tax challenges that no other businesses operating in the United States face, which is why it is imperative that companies seek legal counsel with an experienced marijuana business attorney. IRC §280E prevents businesses that are engaged in “drug trafficking,” including marijuana, from taking regular business deductions. §280E forces cannabis businesses to use specific accounting methods, makes them more likely to be audited and significantly raises the potential tax liability for cannabis operators. The experienced lawyers in the Greenspoon Marder Cannabis Law Practice can help you navigate through the tax issues your cannabis-related business will most certainly face.
Our firm can help with:
- Corporate structuring and entity formation
- §280E guidance, accounting methods and cost of goods sold decision-making
- State, local and IRS audits
- White-collar and tax crime representation
- Tax controversy
- Tax Court litigation
Until Congress acts on §280E and excludes marijuana businesses from this limitation, it remains one of the biggest challenges that operators face. It is extremely important to be thoughtful from a tax perspective about how your corporate structure, understand clearly how to operate under §280E and have an experienced marijuana business attorney on your team if your business is audited or you are contacted by the IRS or other taxing authorities.
Patricia Gannon
Partner, Chair of the Immigration and Naturalization Group and Deputy Managing Partner of the New York Office
