We speak with Todd Polyniak, Sax LLP Head of Cannabis Practice, and a seasoned expert in the cannabis industry. We discussed the 471C tax code provision. This provision allows small businesses to identify specific inventory items for cost calculations that would otherwise be disallowed under 280E. However, utilizing 471C is risky, as it could trigger audits and penalties if the IRS disagrees. They also discussed the potential implications of cannabis legalization, including the implementation of an excise tax similar to those on alcohol and tobacco, and the potential for challenges with rescheduling cannabis from a controlled substance to a less restricted category. While Todd is optimistic about the future of the cannabis market, Brasco believes that the IRS will find ways to recoup their tax write-off losses and that some companies might attempt to reclaim them through re-auditing, though the success of this strategy remains uncertain. Advertising Inquiries: https://redcircle.com/brands Privacy & Opt-Out: https://redcircle.com/privacy