IRS Chief Counsel noted in its May 2019 response to TIGTA that taxpayers may take the position illustrated in Case B to avoid the application of IRC 280E.
Why did he show this? Because they are concerned the cannabis industry may just win the tax court case to put more into Cost of Goods Sold than the prior tax court cases prescribed?
Source: TIGTA-developed examples based on IRS discussions and IRS written responses.
the Cannabis Green Rush: What Investors Must Know!
The Green Rush provides tremendous opportunity in the next twenty years. Everyone thinks cannabis is a get-rich scheme and the myths are many. There will be many winners and many losers. What makes this such a unique market is that every state is basically its own country in how the legal market operates. Taxes are the number one issue in cannabis not just at the federal level, but at the state level down to the local level.
