Audit Services

280E Compliance Audits

The IRS will eventually review your cost allocation. This engagement runs that review first.

The IRS will eventually review your cost allocation. This engagement runs that review first, while there is still time to correct what it finds.

What's Included

✓Methodology review — of your current COGS allocation

✓§471 testing — whether capitalized costs are supportable

✓Documentation assessment — is it contemporaneous, is it complete

✓Entity structure review — for 280E exposure

✓Missed capitalization — costs improperly expensed that could have been capitalized

✓Exposure estimate — quantified, with a prioritized remediation plan

Why This Differs In Cannabis

This engagement does not exist outside cannabis, because 280E does not exist outside cannabis.

The value runs in both directions. We frequently find operators leaving legitimate capitalization on the table — paying more than they owe. We also find positions that look advantageous until you ask what documentation supports them, and the answer is none. Both are worth knowing before an examiner asks.

The value runs both directions — overpayment and exposure.

Why MCA

We have served licensed cannabis operators since 2015 — one of the first firms in the country to build a practice around it — and we have worked with more than 100 operators across 30+ states. Cannabis is all we do, and all we have ever done.

Frequently Asked

Will this find problems we would rather not know about?

You would rather know now, when you can fix them, than during an examination when you cannot.

What if you find we have been overpaying?

We will quantify it and assess whether amending prior years makes sense.

How long?

Typically three to five weeks, and it is confidential.

📅 Book a Free Call 📞 1(844)-IRS-280E