Getting started

Cannabis businesses face elevated audit risk due to IRS 280E and high cash volume. This page explains common red flags, including revenue that does not match deposits, improper COGS allocations, missed quarterly payments, cash reporting gaps, and payroll tax violations that can trigger IRS review.

Billboard advertising is prohibited for adult-use cannabis licensees in New York. Outdoor signs over 55 square feet within 100 yards or over 16 square feet beyond 100 yards qualify as billboards and are not permitted. Billboards must be removed by February 24, 2026.

OCM may suspend or revoke a New York cannabis license for regulatory violations, undisclosed ownership changes, security failures, diversion, or sales violations. This page explains enforcement triggers, inspection failures, emergency suspension authority, Notice of Violation procedures, hearing rights, and what happens during investigations or revocation proceedings.