Complimentary Financial Book Review for Cannabis Companies
IRS AI Audits Are Coming for Cannabis in 2025—Spot Red Flags Before They Do With Rates 2-3x Higher Than Average Businesses
The IRS is rolling out AI for faster audit selection in 2025, analyzing returns for inconsistencies in high-risk sectors like cannabis. Under Section 280E, ops face effective tax rates over 70%—taxed on gross profit after COGS, not net income—making even small errors costly ($50K+ adjustments common). As Dope CFO-affiliated CPAs, our complimentary book review flags 280E pitfalls and IRS triggers in your Q3/Q4 statements—no data needed from you beyond basics.
Common IRS Audit Triggers in Cannabis
AI tools like the IRS's Line Anomaly Recommender scan for deviations in key areas, per 2025 enforcement plans:
Gross profit mismatches (industry norm: 45-55% for dispensaries; outliers flag high/low).
Improper COGS allocation
Unreported cash income or excessive "other deductions" (280E disallows most).
Inventory/UNICAP errors
Cannabis audit rates hit 6-13% (vs. 1.4% overall), often yielding big IRS wins on 280E.
What's in Your Free 280E Book Review
We dive into your books for a 7-10 day turnaround:
280E Compliance Check: Verify COGS setup to maximize deductions (e.g., direct labor/utilities in grow ops) and flag non-deductibles.
Insurance Coverage & Premium Review – Quick analysis of your current commercial policies (General Liability, Product Liability, Crop, Property, D&O, Cyber) to identify coverage gaps and opportunities to lower premiums — brought to you by Cannabis Insurance Group, our sister organization.
Red Flag Audit Scan: Review for IRS triggers like GP inconsistencies or cash reporting gaps, using public industry norms (e.g., 50-60% gross margins for retail).
Quick-Win Optimizations: Actionable fixes for UNICAP/inventory to cut exposure—many clients save 20-30% on taxes.
30-Min Debrief Call: Our cannabis CPAs walk you through findings (Dope CFO-style insights for growth tie-ins)—confidential, no pitch.
Limited to 8/month. Pairs perfectly with Cannabis Insurance Group for audit-ready coverage at lower premiums.
Why Canopy CFO + Dope CFO?
We’re a specialist cannabis CPA firm—exclusively plant-touching—serving dispensaries, cultivators, processors, and multi-state operators nationwide since 2016.
What we consistently deliver for clients
Proper 280E + UNICAP structuring that routinely reduces effective federal tax rates from the 70-80% range into the 50-60% range
COGS reconstructions that legally move six- and seven-figure expenses from non-deductible to deductible
Clean, investor-ready financials and pro-forma models that have supported successful debt and equity raises
Successful defense in IRS examinations using 471(c) inventory elections, small-producer UNICAP simplifications, and cost-segregation strategies
Amended returns that generate meaningful refunds when prior accountants misapplied 280E or UNICAP
50+ cannabis businesses served Single-site startups to eight-figure MSOs across every major market.
What actually sets us apart:
We only work with plant-touching cannabis companies—no divided attention.
All work is performed in-house by senior cannabis CPAs.
We maintain direct access to the largest private network of cannabis-specialized CPAs and tax attorneys in the country—ensuring we’re never guessing on the gray-area issues that come up every single week.
We build the KPI dashboards, pro-forma models, and capital-raising packages ourselves—so your books are always audit-ready and investor-ready at the same time.
The bottom line Most cannabis operators overpay taxes—sometimes dramatically—because their current accountant doesn’t live and breathe 280E, UNICAP, and state track-and-trace rules every day. We do.
That’s why your complimentary book review uses the exact same diagnostic process that has already identified six- and seven-figure opportunities for our existing clients.
Ready to see what’s possible for your business?