Documents Reveal How IRS Became More Adept At Evaluating Marijuana Company Taxes
The agency has undertaken at least 5 multiyear audit programs of cannabusinesses
The Internal Revenue Service has been scrutinizing the books and records of marijuana companies for more than a decade, ordering business owners to hand over tens of millions of dollars in unpaid taxes.
That fact isn’t necessarily news to many industry insiders, but what has largely been kept under wraps is the agency’s decision to undertake at least five sweeping, multiyear audit programs that targeted scores of cannabis businesses in at least four states across the West and in Detroit.
The audits – known as Compliance Initiative Projects” (CIPs) – were run by at least three different IRS field offices.
Their goal: to enforce federal tax code compliance, based on the agency’s belief that many marijuana companies were skirting Section 280E of the federal tax code and claiming illegal write-offs.
The IRS confirmed to Marijuana Business Daily that audits connected to at least two of the CIPs are still ongoing in Detroit and the “Western Area,” which includes Colorado.
To Read The Rest Of This Article On MJ Biz Daily, Click Here
