Most financial institutions are wary of working alongside cannabis-related businesses despite widening acceptance, according to a new report.
The U.S. Government Accountability Office analyzed data from the Financial Crimes Enforcement Network, a federal agency that combats financial crimes, to determine how cannabis-related businesses operated alongside the financial industry.
Under IRS code, businesses engaging with Schedule I or II controlled substances cannot deduct business expenses for federal tax purposes. Cannabis-related business owners reported this as a major constraint in the report.
