IRS TARGETS POTCO’S WITH AUDIT SQUADS

(Photo Illustration by Scott Olson/Getty Images)

Seemingly annoyed by some potco’s failure to pay taxes, the IRS is creating specialized cannabis audit teams.
WeedWeek

• While it’s not entirely clear what these teams will do or how they will operate, an IRS official said they aimed to bring “consistency of application of the tax law within the scope of the cannabis industry.”
• Even if it leads to be a spike in enforcement, James Mann, the cannabis tax lawyer who represents Harborside in its 280E case, described the announcement as something cannabiz operators should welcome. As he sees it, enforcement will help normalize and standardize cannabis tax practices. “There needs to be a uniform set of audit guidelines and those guidelines should be known by everyone,” he said.
• Cannabis companies are already facing an uptick in 280E audits (paywalled).
  Business Insider

Also in WeedWeek:

• Some companies have had “expensive awakenings” as states step up cannabis compliance enforcement.
• Specialized data is an increasingly important tool for the industry.