Cannabis Tax Issues
You are going about your day and all of a sudden, you receive a notice from the state or federal government notifying you that you have been selected for a tax audit. This notice can be for sales and use tax, 280E, or even a simple income tax audit.
However, in most cases, the IRS will have selected you for a 280E audit. One of the biggest challenges facing dispensaries today is the ever evolving 280E. The IRS is a silent killer to the thriving cannabis industry. Section 280E has been used by the federal government to blunt the effects of legalization of cannabis on the state level, with the IRS often assessing a tax rate at a rate of more than 100% of net income.
Before you respond to the state or federal government, it is extremely important to know what your rights are and to contact an attorney. Our attorneys will take over the audit immediately, relieving you of any communication with the state or federal government. We are highly experienced in dealing with cannabis audits (sales, use, income, partnership, etc.) and have working relationships with a majority of the state and federal auditors in Colorado. We have achieved very successful outcomes/settlements in audits and have considerable experience litigating the issue of 280E in court.
How We Can Help
It is important for business owners to stay ahead of 280E by knowing how to use current legislation and litigation to their advantage. It is also important to have the right tools and people in place to back them up once the IRS knocks at their door.
Our firm is the leader in the most innovative and sophisticated cannabis tax litigation in the nation, and we have had several published opinions. We have received national recognition as leading litigators for the cannabis industry's highest profile cases - and have recognized significant wins for the industry along the way. Please refer to our main cannabis page for a list of our published opinions.
We provide tax representation in the following areas:
Business, trust, estate, or individual
Federal and State Tax Law Regulatory Compliance
Federal and State Civil Audit Representation, to include audits, assessments, and collection activities
Representation before the IRS, the Department of Justice, and state taxing authorities
Pursuing federal or state administrative or judicial appeals