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Cannabis beverage shareholders challenge $4.6 million in 280E tax bills

Shareholders of Washington producer Dogtown Pioneers filed U.S. Tax Court petitions contesting roughly $4.6 million in taxes and penalties, arguing its finished THC beverages met the federal hemp threshold and should not trigger Section 280E. Oklahoma beverage and hemp operators should watch how the court analyzes finished-product concentration, dry-weight calculations and pass-through tax liability.

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