IRS preparing “tsunami” of audits of California weed industry
“It’s going to be low and slow, but deep”
By Kieran Delamont
Without access to banks, many pot businesses in the U.S. are forced to deal in cash. And look for sources of capital outside big banks. It’s a big problem.
And now a former lawyer with the Internal Revenue Service (IRS) is warning about a “tsunami” of audits as Uncle Sam eyes his slice of the weed pie. The IRS has already given a name to the effort — the Compliance Initiative Project.
“It will be more of a tsunami than a 25-foot wave,” Nick Richards, a Denver-based lawyer told MJBizDaily. “It’s going to be low and slow, but deep.”
The IRS is reportedly targeting California first, where the grey market has thrived alongside the legal one for a long time. According to Richards, those targetted could include leasing companies and landlords profiting from cannabis sales.