Beyond 280E Compliance: Building Defensible COGS Positions
The Permanent Challenge of 280E Section 280E can create effective tax rates exceeding 70% for cannabis businesses, fundamentally altering the economics of an otherwise profitable industry. Originally enacted in 1982 after Edmondson v. Commissioner allowed a cocaine trafficker to deduct business expenses, the statute now applies to every state-legal cannabis operation. IRS audit data has […]
