A recent U.S. Tax Court Case captioned “Raymond Chico and Ruby Chico v. Commissioner” , Respondent upheld the use of a very simple tax accounting tool by the IRS in determining the tax liability of a cannabis-related business. The IRS used the ‘gross receipts method’ to add up all receipts from all sources and determined that it all was taxable income. The Tax Court determined that the IRS could collect all applicable penalties including the accuracy-related penalties.