Bloomberg Tax
July 19, 2019, 7:38 PM

Pot Company to Take the IRS to Court Over Drug War-Era Policy

Lydia O'Neal
Lydia O'Neal
Reporter

Last year was a rough one for cannabis companies in Tax Court. Now one of them is fighting back.

Harborside Inc., which went public on Canada’s stock exchange earlier this year, plans to appeal its November 2018 Tax Court ruling, the official decision and penalties for which should come any day now, according to the company’s counsel. The court sided with the government and is expected to charge Harborside between $11 million and $13 million in back taxes under a drug war-era tax policy that’s become the bane of pot company CPAs’ existence: Section 280E.

A successful ...

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