Green Growth CPA’s write
Earlier this year the Treasury Inspector General published their 53-page report on how the IRS handles cash-based businesses and their findings for the cannabis industry.
There was some pretty juicy info in there including that nearly 60% of California cannabis businesses (if audited) would be out of compliance with IRC 280E. Or that 26% of cannabis tax filers in Washington are either under-reporting income or not filing at all. The Inspector General also noted that the IRS needs to step up their game in ‘finding’ these potentially non-compliant cannabis businesses using public information as well as leveraging information-sharing agreements they have with other agencies.
Download the report here: https://greengrowthcpas.com/podcasts/… In this video, we help you to better understand the report by discussing: + What the IG Report Is + High-Level Findings of the Inspector General Report IRS + Recommendations From the Report to the IRS + Deep Dive on Three Findings + Cannabis Tax Cases NOT Being Worked + Using Public Info To Identify Non-Filers & Underreporting Income + TCJA Section 471(c) + 3 Final Thoughts & Considerations