CAN2106. Section 280E Disputes: When to Hold 'Em, When to Fold 'Em

This presentation will provide an overview of tax litigation involving IRS audits of cannabis companies and the application of Section 280E. The discussion will include cases defining trafficking, cases discussing separate trade or business issues, cases resulting in double taxation, the application of penalties to underpayments caused by the improper reporting of Section 280E, cases addressing inventory accounting (including the application of Section 471 and 263A), and constitutional arguments. The speaker will share her experiences with IRS audits and litigation of Section 280E issues.

Learning Objectives:

• • Gain basic understanding of tax litigation based on IRS challenges to the application of Section 280E on tax returns.
• • Identify strengths and weaknesses in various tax reporting by cannabis companies.