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IRC Sec. 280E, Application of Daubert Standards and Missed Opportunities

Its nice to see discussion about IRC Sec. 280E, and where the level of knowledge within the community stands. We assume that everyone is familiar with the holding in Alterman TC Memo 2018-83. We published a piece last week on the application of IRC Sec. 280E to cultivators, manufacturers, and Distributors. Well, here is a case where the Tax Court was about to accept a taxpayer’s “expert witness” under Rule 702 and the Daubert standard where they “shot themselves in the head with a self-inflicted wound”.

Missing Opportunity IRC Sec. 280E – Israeli Diplomat Abba Eban had a famous quote “Palestinians never miss an opportunity to miss an opportunity.“. We leave the background of the quote those wiser than ourselves to explain. However, Neil and Andrea Feinberg did exactly that in [Neil Feinberg et ux., et al. v. Commissioner, (2017 TC Memo 2017-211)].

We intend to expand on our thoughts about this case in a lengthier article. However, if there EVER we an example of taxpayers being granted the benefit of the doubt by a court, and then proceeding to shoot themselves in the head due to self-inflicted wounds from a bumbling expert, incomplete and sloppy record keeping, this would be the case.

You can read more on our website at Missing Opportunity IRC Sec. 280E

Thank you good info…You are amazing and know your stuff!!

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