Could an Obscure Tax Loophole Have “Dire Consequences” for Cannabis Businesses?
In March, the U.S. Treasury Inspector General for Tax Administration (TIGTA) issued a report with the scintillating title, “The Growth of the Marijuana Industry Warrants Increased Tax Compliance Efforts and Additional Guidance.” The report’s contents are as dry you'd expect. But it should serve as a warning: as long as pot remains a Schedule 1 narcotic under federal law, the Treasury Department and Internal Revenue Service pose a major threat to legal cannabis.In calling for “increased tax compliance efforts,” TIGTA’s report encouraged . . .
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