CCB Compliance Inspection Support
Cannabis Compliance Board inspections review operational compliance including METRC accuracy, security protocols, packaging and labeling, and recordkeeping. While these inspections are primarily operational rather than financial, financial and inventory records are frequently requested to verify that reported production and sales align with METRC data, and discrepancies here can trigger a deeper review.
We prepare operators for scheduled inspections by conducting an internal readiness review beforehand, confirming that financial records reconcile to METRC and that documentation for any prior corrective action is organized and accessible. If a discrepancy surfaces during an inspection, we help draft the operator's response and any corrective action plan the CCB requires.
Nevada Department of Taxation Notices
Notices from the Nevada Department of Taxation typically involve questions about excise tax remittance amounts, sales tax collection, or Commerce Tax and Modified Business Tax filings. We respond to these notices directly on your behalf, gathering the underlying METRC and financial records needed to support your original filing position or, where an error is identified, calculating the correct amended liability.
Timely response matters because unaddressed notices can escalate to formal assessments with penalties and interest that compound the longer they remain unresolved. We manage the notice timeline and required response deadlines so nothing falls through administratively while you continue running daily operations in Las Vegas, Reno or wherever your license operates.
- Direct correspondence and document submission to the Nevada Department of Taxation
- Excise tax remittance reconciliation to support or correct a filing position
- Penalty abatement requests where reasonable cause exists
IRS Examination and 280E Defense
Federal examinations of cannabis operators frequently center on the COGS allocation used to reduce 280E-disallowed income, since this is the primary lever available to a cannabis business under current federal law. We represent operators through the examination process, providing the written accounting method documentation, METRC-based cost tracing, and legal support for the allocation methodology used on the filed return.
Where the IRS proposes an adjustment, we evaluate whether the proposed change is supportable under current case law and either negotiate a resolution at the examination level or, where warranted, support an appeal within the IRS Independent Office of Appeals before litigation would ever become necessary.
Examination Document Requests
We manage the collection and organized submission of records requested during an IRS examination, including general ledgers, METRC exports, invoices supporting COGS allocation, and the written accounting method memo, presenting the file in a format that facilitates efficient review rather than a disorganized document dump.
Proposed Adjustment Response
If an examiner proposes reclassifying certain costs from COGS to disallowed expense, we prepare a technical response citing the relevant Internal Revenue Code sections and case precedent supporting your original position, and we negotiate directly with the examiner or appeals officer on your behalf.
Preventive Documentation Before an Audit Occurs
The strongest audit defense is built before an audit ever begins. We help Nevada operators maintain contemporaneous documentation, including monthly reconciliations, a current written accounting method, and organized source documents, specifically so that if any of the three regulatory bodies opens an inquiry, the response is a matter of assembling existing records rather than reconstructing history under deadline pressure.
- Contemporaneous monthly reconciliation and documentation retention
- Annual audit-readiness review across CCB, Department of Taxation and IRS exposure areas
Communication and Case Management
Throughout any examination or inspection, we serve as the primary point of contact with the regulator so your team is not fielding unfamiliar questions in real time. We provide regular status updates and explain each step of the process in plain language so you understand what is being requested and why.
