Partner with AAFCPAs to mitigate the impact of 280E, optimize your tax strategy, and unlock growth potential for your cannabis operation.
280E & Cannabis Tax Strategy
Our team closely monitors federal cannabis rescheduling and 280E transition developments from a national perspective and actively participates in policy discussions shaping the industry. Our cannabis subject matter expertise has been sought by the U.S. Treasury and Senate Finance Committee through our leadership with the AICPA to help inform regulatory guidance. Regardless of how cannabis regulations evolve, we are poised to help owners and investors anticipate change, improve cash flow, manage risk, and optimize enterprise value.
Given the current state of rescheduling and the recent uncertain tax positions taken by leading MSOs, AAFCPAs is well-positioned to advise clients on the pros and cons of a non-IRC 280E approach. We support clients in making informed decisions based on their financial situation, risk profile, and other relevant factors. Our services include analyzing and disclosing specific tax positions, navigating IRS scrutiny, and considering timing implications.
Additionally, we offer strategic tax advice on optimizing Cost of Goods Sold (COGS), implementing ESOP structures, and utilizing 471(c) strategies. These strategies impact taxation, accounting methods, and audit readiness. Given the tight cash flow and narrow margins in the cannabis industry, taxation remains a significant challenge. Until rescheduling occurs, AAFCPAs ensures clients are well-informed about the strategies they can implement now.
As an industry pioneer, AAFCPAs has extensive experience advising operators on strategies to solve the cannabis industry’s annual $1+ billion income tax challenge: Internal Revenue Code (IRC) Section 280E.
Tax Planning, Compliance & 280E Guidance
What Our Clients Say
C3 Industries is a fully vertical multi-state operator with retail, cultivation, and manufacturing operations in Oregon, Michigan, and soon-to-be Massachusetts & Missouri. The amount of work our AAFCPAs assurance and tax team puts in makes me smile. We have a complex business structure, the need for clear, concise, and auditable financial statements, and 280E requires constant visitation and brainstorming to maximize our tax position. It’s refreshing to see the AAFCPAs team dive in, evaluate tax & GAAP implications, and come back with sound conclusions and next steps—which has not been my experience with prior firms. They put in the time and effort to digest 500-page accounting guides and then send me synopses of what I need to know. It has been one of the most pleasant assurance and tax relationships I’ve ever had. Our AAFCPAs team is important to us, and we are happy to continue to grow this relationship in the years to come.
Our Advisors
Facing tight margins and complex regulations in the cannabis industry? AAFCPAs’ dispensary consulting team provides tailored inventory management, procurement strategy, and cash flow solutions to help you boost efficiency, streamline operations, and maximize profits.
TRENDING NOW
Stay up-to-date on trending topics, fresh perspectives, in-depth analysis, and regulatory alerts that affect your business.
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