The tax man is not popular in business circles, but that’s even more true in the cannabis industry. Particularly in California.
Federal and state tax bills have become a major factor in the widening cash crunch that’s been developing in the California marijuana market for months, a trend that’s gotten so dire that many in the state predict more business failures this year.
While many know the much-despised 280E section of the federal tax code – which bars standard business deductions for any company trafficking in a controlled substance – California’s state tax agency has also been compounding the financial burden with hefty penalties for late payments, industry insiders said.
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