Trulieve Vs The IRS Over Millions Of Dollars In Tax Refund, Relocates One Of Its Florida Stores

Trulieve Cannabis Corp. TRUL TCNNF announced on Friday the filing of amended federal tax returns with refund claims for several of the company's business entities for 2019, 2020 and 2021.

The medical cannabis giant is claiming a refund of $143 million from taxes paid, which the company believes it does not owe, although there is no guarantee of receipt.

This determination is supported by legal interpretations that challenge the company's tax liability under Section 280E of the Internal Revenue Code.

The restrictive IRS code bans tax deductions at the federal level for state-licensed medical cannabis businesses.

According to Viridian Capital Advisors, a financial and strategic advisory firm, eliminating this provision would have a more significant effect than anticipated, potentially increasing free cash flow (FCF) and profitability for major cannabis companies. The move could add an estimated $700 million to the 2023 FCF.

Dispensary Relocation

Trulieve simultaneously announced the relocation of a medical cannabis dispensary in Melbourne, Florida.

"We are committed to finding the most convenient locations to best serve our Florida patients," said CEO  Kim Rivers.  "This relocation improves our ability to offer our broad assortment of products and first-class customer service to the Melbourne community."

The new location at 1921 Alma Drive is less than one mile from Interstate 95 and will service patients in southern Brevard County.

The company will hold a grand opening celebration at the new location on Friday, Oct. 20, with partner giveaways, music, specials, discounts and opportunities to register for upcoming patient education sessions.

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Photo: Courtesy of Markus Winkler on Unsplash