Marijuana Companies Won’t Get IRS Tax Guidance Anytime Soon (1)

The IRS told the Treasury Department’s watchdog that it is too busy to provide guidance on state-legal marijuana operations.

The Treasury Inspector General for Tax Administration, in a report released Thursday, said the agency needed to do more to ensure that marijuana businesses are complying with the federal tax code. A random sampling of 2016 tax returns filed by marijuana businesses in three states found that 59% of tax returns would likely need adjustments, which translates to a projected $48.5 million in unassessed taxes for that year.

State-legal marijuana businesses are cash-intensive because they have limited access to banking. ...