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(This is a developing story and will be updated.)
Multistate marijuana company Trulieve Cannabis Corp. revealed that it has received $113 million worth of tax refunds as it challenges what it owes under Section 280E of the IRS code.
Florida-based Trulieve made waves in the U.S. marijuana industry when it announced the plan to seek $143 million worth of federal tax refunds in October 2023.
Trulieve also is seeking $31 million in state tax refunds.
In a fourth-quarter earnings report released Thursday, Trulieve said it has:
- Received $62 million worth of tax refunds during the quarter ended Dec. 31.
- Received “a total of $113 million in refunds to date.”
- Received “one rejection notice in the amount of $1.2 million.”
Trulieve did not specify whether the successful or rejected refunds came from the federal government or state governments.
During a Thursday earnings call, Trulieve executives were asked whether the company’s tax refund strategy is applicable to other cannabis operators.
Trulieve CEO Kim Rivers said she couldn’t reveal more details about what she called a “trade secret” but added that the company considers the tax refund strategy to be “in large part specific to our position and our organization.”
“We are not going to be sharing that information publicly, given the fact that it could be in a litigation posture,” Rivers said.
“That information would become available if and when we actually get to a court filing.”
Trulieve Chief Financial Officer Wes Getman said the company is still accruing money to pay its tax liabilities in the face of uncertainty.
“Until this process reaches a final resolution, we anticipate the uncertain tax position will increase over time,” Getman said in prepared remarks.
“We will continue to make timely payments as an ordinary corporate taxpayer.”
Trulieve’s balance sheet shows $180.4 million in “uncertain tax position liabilities” as of Dec. 31.
Solomon Israel can be reached at solomon.israel@mjbizdaily.com.
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