Can the IRS Access Your Cannabis Bank Records?

Can the IRS Access Your Cannabis Bank Records?

Yes, the IRS can access cannabis business bank records during an audit. Learn how bank statements are reviewed and matched to reported income.

What This Page Covers

  • IRS authority
  • Deposit matching
  • Cash review
  • Third-party reporting

Can the IRS See Your Bank Records?

Yes. During an audit, the IRS may request bank statements directly from you or from the bank.

What They Compare

  • Deposits vs reported revenue
  • Cash vs electronic sales
  • Transfers between accounts

Unexplained deposits are treated as income unless proven otherwise.

Why This Matters

Poor reconciliation increases tax adjustments.

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