Bloomberg Tax
Oct. 21, 2021, 8:47 PM

Pot Sellers Would Be Taxed Better If Banked, IRS Official Says

David Hood
David Hood

Businesses that sell cannabis products could be taxed more easily if banks were allowed to service them, an IRS official said Thursday.

The cash-only approach in which cannabis companies commonly operate because of their lack of access to banks makes it more difficult to tax them, said Cassidy Collins, a senior counsel in the Office of the Chief Counsel. In addition, while marijuana use has been legalized in some form in about half the states, she noted, it’s difficult for those businesses to claim deductions and request relief for hardships offered to other firms.

  • Collins said the IRS doesn’t ...

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