The Internal Revenue Service’s (IRS) Taxpayer Advocate is reminding people of the unique financial challenges that state-legal marijuana businesses face under federal prohibition.

In a blog post published on Tuesday, the independent agency under IRS explained that cannabis companies are still obligated to pay federal taxes—but they’re barred from deducting most expenses that other industries can claim because the federal government considers marijuana a strictly controlled substance.

This means that dispensaries are at a significant disadvantage when it comes to taxes, and it’s something that potential dispensary owners should be aware of before getting into the business. However, despite the challenges, there are still opportunities for those who are willing to navigate the complex landscape of tax laws and regulations.

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legalization news, cannabis taxes, cannabis double tax, IRC-280E