15 Major Marijuana Companies Report Over $2.8 Billion in Disputed Tax Liabilities

Fifteen publicly traded marijuana companies reported a combined $2.82 billion in uncertain tax liabilities as of June 30, an increase of approximately $47.3 million since the beginning of 2026, according to an examination of financial disclosures filed with the U.S. Securities and Exchange Commission and other public regulatory filings.

The investigation found that 12 of the 15 companies reported increases in their uncertain tax balances during the first six months of 2026, two reported decreases and one reported no change. The increase came despite an April federal order moving qualifying medical marijuana activities to Schedule III, removing them from the restrictions of Section 280E of the Internal Revenue Code.

The review also identified $38.1 million in additional proposed IRS penalties against Trulieve that are not included in its reported uncertain tax liability, nearly $40 million in federal tax liens against iAnthus subsidiaries, and a Department of Justice lawsuit seeking repayment of a previously issued tax refund to TerrAscend.

Combined, the 15 companies reported approximately $2.769 billion in uncertain tax balances at the end of December 2025, compared with $2.816 billion six months later, an increase of 1.7%.

The balances represent accounting liabilities associated largely with disputed federal tax positions, not final determinations of taxes owed to the IRS. Some include accrued interest, penalties or state tax exposure, and the amounts ultimately collected could differ substantially.

Company-by-Company Breakdown: December 2025 vs. June 2026

The Marijuana Herald examined the financial disclosures of 15 marijuana operators, comparing their reported uncertain tax positions as of December 31, 2025, and June 30, 2026.

Source: Company financial disclosures. All figures are in U.S. dollars and rounded to the nearest $100,000. Totals and percentage changes were calculated using more precise reported figures. Companies use different accounting classifications, and some report under different accounting standards. The comparison reflects their separately reported balances on the dates examined, including businesses subsequently involved in acquisitions.

The three largest balances belonged to Trulieve, Curaleaf and Verano, which together reported approximately $1.47 billion, or 52% of the total.

The 12 companies reporting increases recorded approximately $180.5 million in additional uncertain tax balances, partially offset by $133.2 million in combined reductions at Trulieve and Curaleaf.

However, the underlying filings reveal that changes in these balances do not always represent new tax obligations or resolved disputes. Corporate acquisitions, restructuring, interest charges and reclassifications also affected the reported amounts.

Trulieve’s $70 Million Decline Masks a $131 Million Accounting Adjustment

Trulieve reported the largest uncertain tax liability among the companies examined, with $598.2 million outstanding as of June 30, down from $668.4 million at the end of 2025.

The decline was not primarily the result of successful tax challenges or relief associated with federal marijuana rescheduling.

On June 3, Trulieve completed a restructuring that removed Harvest Enterprises, which held the company’s mixed medical and adult-use marijuana operations, from its consolidated financial statements.

According to Trulieve’s quarterly filing, the transaction removed approximately $131.1 million in uncertain tax liabilities from its consolidated accounts.

That reduction was nearly twice the company’s overall $70.2 million decrease during the first six months of 2026.

The filing separately recorded approximately $35.1 million in additional interest on uncertain tax positions during the same period, along with other adjustments.

Of Trulieve’s remaining $598.2 million liability, approximately $583.1 million was directly associated with the company’s legal position challenging the applicability of Section 280E to its business expenses.

The investigation also identified another potentially significant expense outside that balance.

In September 2025, the IRS issued Revenue Agent Reports proposing additional taxes, interest and penalties against certain Trulieve subsidiaries.

The company disputed the proposed assessments through the IRS Independent Office of Appeals.

While the proposed taxes and interest were already reflected in Trulieve’s uncertain tax liability, the agency also proposed approximately $38.1 million in penalties that the company has not included in its reported balance.

Trulieve maintains that the penalties are unwarranted and intends to contest them.

Curaleaf Faces IRS Audits Covering Five Tax Years

Curaleaf reported $468.5 million in uncertain tax liabilities as of June 30, a decline of approximately $63 million from the end of December.

The company disclosed that the IRS is examining its federal returns for tax years 2020 through 2024, while state tax authorities are also conducting examinations.

Curaleaf has adopted a legal position asserting that Section 280E does not apply to its marijuana operations, allowing it to claim deductions ordinarily prohibited under the provision.

Its financial statements acknowledge the possibility that the IRS could reject that interpretation and assess additional taxes, interest and penalties.

Curaleaf’s reported liability declined following a substantial release of reserves during the first quarter, partially offset by new liabilities and interest recognized during the second quarter.

The company reported approximately $94.6 million in cash and cash equivalents at the end of June, compared with $468.5 million in uncertain tax liabilities.

Although the entire liability is not necessarily due or immediately collectible, the difference illustrates the potential financial consequences of an unfavorable resolution.

Green Thumb Reports $203 Million in Unrecognized Tax Benefits Despite Significant Tax Expenses

Green Thumb Industries, one of the largest marijuana businesses in the country, reported $203.5 million in unrecognized tax benefits as of June 30.

Unlike most of the other companies examined, Green Thumb reported no change in the balance during the first six months of the year.

However, its financial statements reveal the continuing effect of federal marijuana tax restrictions on its operating results.

During the first half of 2026, Green Thumb reported $79.1 million in income before taxes and $60.6 million in income tax expense.

That produced an effective tax rate of approximately 76.6%, substantially above the ordinary 21% federal corporate income tax rate, although state taxes and other accounting factors also contribute to the difference.

During the same period in 2025, Green Thumb’s effective tax rate was approximately 85.3%.

The decline demonstrates an improvement in its reported effective tax rate, but the company’s $203.5 million unrecognized tax benefit balance remained unchanged.

Vireo Reports the Largest Increase, With Acquisitions Playing a Major Role

Vireo Growth reported the largest increase among the 15 companies, with its uncertain tax liability climbing from $120 million at the end of 2025 to $172.8 million in June.

The $52.8 million increase was not entirely attributable to new tax accruals from existing operations.

Vireo completed several acquisitions during the period, including its purchase of Eaze.

The company’s filings reveal that the Eaze acquisition resulted in the recognition of approximately $23 million in uncertain tax liabilities associated with periods before Vireo acquired the business.

Vireo also recognized a corresponding $23 million indemnification asset under agreements requiring the sellers to cover certain pre-acquisition tax liabilities.

Across its operations, Vireo reported approximately $48.8 million in indemnified tax assets at the end of June.

Those assets are important because they potentially reduce the economic cost ultimately borne by Vireo, even though the gross uncertain tax liabilities remain reflected on its balance sheet.

The distinction also means that the $52.8 million increase cannot be interpreted as evidence that Vireo incurred that amount in additional taxes from its operations during the first half of 2026.

Verano, Cresco and Jushi Report Nearly $790 Million Combined

Three other multistate operators, Verano, Cresco Labs and Jushi Holdings, reported approximately $789.4 million in combined uncertain tax liabilities.

Verano’s balance increased from $378.3 million to $400.7 million during the first six months of 2026.

The company also reported that its cash income tax payments, net of refunds, declined from approximately $52 million during the first half of 2025 to $14.2 million during the corresponding period this year.

The change occurred during the period in which qualifying medical marijuana businesses received relief from Section 280E, although the filing does not establish how much of the reduction resulted directly from rescheduling rather than changes in payment timing or other tax positions.

Cresco Labs reported $194.7 million in uncertain tax liabilities, up from $171.5 million at the end of 2025.

Its filing also disclosed a $26.7 million net tax benefit in the second quarter associated with the federal rescheduling of qualifying medical marijuana, including changes in deferred tax assets and liabilities.

Jushi reported $193.9 million in liabilities for unrecognized tax benefits, including approximately $45.2 million in interest and penalties.

The company disclosed that the IRS issued a Notice of Proposed Adjustment in February concerning its 2021 federal income tax return.

Jushi disputed the proposed adjustments and said the potential tax amounts had already been incorporated into its existing liabilities.

The company also recognized a $6.4 million tax benefit following its reassessment of certain deferred tax balances associated with medical marijuana rescheduling.

Nearly $40 Million in Federal Tax Liens and a Justice Department Lawsuit

The investigation found that several companies face enforcement actions extending beyond routine tax accounting disputes.

iAnthus reported that the IRS had filed notices of federal tax liens against certain subsidiaries totaling approximately $14.6 million for 2020 and $25 million for 2021.

The combined liens represent approximately $39.6 million in federal tax claims.

The company said it is working with the IRS to resolve the matters.

TerrAscend, which reported $152.5 million in uncertain tax liabilities as of June 30, faces a separate dispute involving a previously issued tax refund.

According to the company’s SEC filing, the Department of Justice contacted TerrAscend on April 6 seeking repayment of approximately $9.5 million, including estimated interest, relating to its 2020 federal tax return.

On May 18, federal prosecutors filed a complaint in the U.S. District Court for the District of New Jersey seeking recovery of the disputed refund.

The company maintains that it has substantive defenses and intends to contest the government’s position. It did not record a separate liability for the proceeding as of June 30 because management determined that a loss was not probable.

TerrAscend also disclosed an ongoing IRS examination of its federal income tax returns for 2021 through 2023.

The federal tax liens and litigation amounts were not added separately to the investigation’s combined $2.82 billion total because some associated obligations are already reflected in the companies’ financial statements.

Smaller Operators Report Increasing Exposure

The review also identified increasing uncertain tax balances among several smaller publicly traded marijuana companies.

FLUENT Corp. reported $64.7 million in uncertain tax liabilities, compared with $60.1 million at the end of December.

The company disclosed that the balance includes accumulated interest and penalties associated with its legal challenge to Section 280E.

FLUENT, formerly known as Cansortium, also reported circumstances raising substantial doubt about its ability to continue operating without successfully addressing its liquidity problems, while pursuing a proposed acquisition by Vireo.

Planet 13 reported $40.1 million in uncertain tax positions, up from $33 million six months earlier.

C21 Investments reported $14.1 million as of June 30, while Vext Science reported $11.7 million and Grown Rogue reported approximately $9.8 million.

Vext’s filings highlight another important accounting distinction.

The company disclosed that it reclassified approximately $4 million from income taxes payable into its uncertain tax position liability during the first six months of 2026.

Consequently, the increase in Vext’s uncertain tax balance does not necessarily represent an equivalent increase in its overall tax obligations.

Another significant publicly traded operator, Glass House Brands, separately reported approximately $38 million in uncertain tax provisions during its second-quarter earnings call.

However, its financial statements present different tax accounting measures, including $21.9 million in unrecognized tax benefits associated with its Section 280E positions. Those figures were not added to the 15-company comparison because the disclosures do not provide an equivalently defined balance for the two dates examined.

Medical Marijuana Rescheduling Has Not Settled Earlier Tax Disputes

Section 280E generally prevents businesses trafficking in Schedule I or Schedule II controlled substances from deducting ordinary and necessary business expenses.

The restriction has historically resulted in marijuana companies facing substantially higher effective income tax rates than businesses outside the federally prohibited drug industry.

On April 23, the Justice Department issued a final order moving qualifying state-licensed medical marijuana products and certain federally approved products to Schedule III. The order took effect April 28.

Adult-use marijuana activities remain subject to Schedule I restrictions.

The Treasury Department and IRS announced that they intend to issue additional guidance addressing the tax consequences, including how businesses operating both medical and recreational facilities should allocate expenses.

The agencies also indicated that forthcoming transition guidance would generally apply the relief to the full taxable year containing the order’s effective date.

However, the April order did not automatically eliminate contested liabilities from earlier tax years.

Company disclosures reveal varying approaches to the change.

Jushi recognized relief for qualifying medical marijuana activities beginning April 28 but maintained uncertain tax reserves for earlier periods and adult-use operations.

Curaleaf’s filing identified April 23 as the beginning date for recognizing tax benefits associated with qualifying medical activities, despite the final order’s April 28 effective date.

Ascend Wellness said it had not adjusted its prior-year uncertain tax positions because implementation guidance remained limited.

Trulieve likewise continued recognizing substantial historical reserves despite concluding that its qualifying medical marijuana operations met the relevant accounting threshold for 2026.

These differences reflect ongoing questions surrounding the effective date, possible retroactive treatment, expense allocation and the resolution of tax positions companies adopted before federal rescheduling.

What the $2.82 Billion Figure Represents

The Marijuana Herald’s investigation covers 15 publicly traded marijuana operators with identifiable uncertain tax balances as of December 31, 2025, and June 30, 2026.

The review is not an estimate of the entire marijuana industry’s tax exposure, and the companies were not selected using a ranking of revenue or market capitalization.

It also does not include every tax obligation recorded by the companies examined.

Current income taxes payable, deferred tax liabilities and certain other tax-related amounts were excluded where they were not part of the selected uncertain tax balances.

The companies also differ in their accounting practices. Some include interest and penalties within their reported reserves, while others disclose those amounts separately. Certain balances include state tax matters, and corporate acquisitions and restructuring can substantially change reported figures between periods.

Consequently, the $2.82 billion should not be interpreted as a definitive amount owed to the IRS, or as evidence that the underlying tax obligations increased by exactly $47.3 million during the first half of 2026.

The figures establish that the 15 operators collectively reported $2.816 billion in uncertain tax balances at the end of June, compared with $2.769 billion six months earlier.

The individual disclosures also establish that major disputes remain unresolved, including Trulieve’s additional $38.1 million in proposed penalties, Curaleaf’s IRS examinations covering five tax years, Jushi’s contested tax adjustment, TerrAscend’s federal refund lawsuit and nearly $40 million in federal tax liens disclosed by iAnthus.