Evergreen
IRC 471(c) cannabis inventory accounting
Bob Hoban, Hoban Law Group · Last updated May 2026
On-record soundbite (1–2 sentences)
“IRC 471(c) is one of the most underutilized tools available to cannabis operators. It allows simplified cost accounting that can expand COGS deductions under 280E — but only if the operator implements it correctly and can survive IRS scrutiny. This is not a DIY tax strategy.”
— Robert Hoban, Hoban Law Group
Extended quote (3–4 sentences)
“IRC 471(c) is one of the most underutilized tools available to cannabis operators. It allows simplified cost accounting that can expand COGS deductions under 280E — but only if the operator implements it correctly and can survive IRS scrutiny. This is not a DIY tax strategy. The IRS has been increasingly aggressive in auditing cannabis operators who claim 471(c) benefits, and the case law is still evolving. Operators who invest in proper implementation and documentation are far better positioned than those chasing the deduction opportunistically.”
— Robert Hoban, Hoban Law Group
Attribution
Robert Hoban, Founder and Managing Partner, Hoban Law Group. Quotes may be used in editorial coverage with this attribution line. For background briefings or custom quotes on adjacent topics, contact the press team.