When your business is considered illegal by the federal government you’re bound to run into tax problems. Cannabis businesses like growers, dispensaries, and retailers all fall under Section 280E of the tax code. This classification doesn’t allow for most common credits and deductions that can be taken by other types of businesses. Which expenses are considered deductible is debatable and gray areas can cause problems with the taxing authorities.
If your cannabis business has received an IRS or State audit notice don’t try to deal with it on your own and risk steep penalties. At New Leaf EA, Corp, we know exactly what to do and will deal with auditor on your behalf. You can count on us to work hard to find a fair resolution, minimize your taxes owed, and set up a reasonable plan to pay off your tax debt if necessary.