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In this presentation, despite the IRS's reiterated stance that 280E still applies, Justin Botillier will discuss the justification for moving forward without reducing deductions disallowed by 280E and amending tax returns to recapture lost deductions. He will provide an in-depth explanation of the arguments for this approach and present the regulatory context that supports the reasonable basis for this position. 

According to the tax code, 280E does not apply simply because cannabis is classified as a Schedule I or II substance, but rather because the DOJ and HHS have concluded that it does not "fit the meaning" of a Schedule I or II substance as defined by the CSA. In addition, he will provide an update on the federal court case brought by Canna Provisions, which challenges the constitutionality of 280E. Finally, he will further explore 471(c) as a growing and accepted methodology for capitalizing overhead costs into inventory and deducting them as cost of goods sold. 

By understanding how to challenge 280E, and aggressively and defensibly eliminate phantom income, a business can avoid overpaying taxes, and deliver a vital boost to their company’s cash flow.