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compliance

September 08 2020

Cannabis CPA vs Local General CPA

As tax extensions are coming due, we wanted to share some ‘insider’ thoughts about choosing a CPA to prepare your cannabis business tax returns.Over the past 45 days, our team has been increasingly getting on calls with cannabis operators that chose to go with a local, generalist CPA firm...

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Filed Under: Compliance, Taxes, Accounting

April 24 2020

Role of a Receiver and the Benefits of Receivership

This post is part 2 in a series about economic receivership. Catch up on the first part, “Receivership for Cannabis Businesses” for more information. 

  • Cannabis businesses can't file for bankruptcy; receivership is an alternative solution.
  • A "receiver" is someone appointed by the court...
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Filed Under: Compliance, Business, Finance, Accounting

November 12 2019

Leveraging Real Estate, Assets, Cannabis Licenses for Better Cash Flow

Investments in real estate, licensing fees, and partnership agreements offer the opportunity for new revenue streams – here's how. 

  • Lease a bigger space and invite other operators to open a business under your license, and use space in your location. 
  • You may not sub-license cannabis...
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Filed Under: Compliance, Licenses, Finance, Investing, Operations

November 06 2019

Can Cannabis Businesses File for Bankruptcy?

The short answer: no. But there are other options.

  • Federal regulations outlawing the sale of cannabis mean cannabis operators can’t file for bankruptcy.
  • Garvin v. Cook and the case of Way to Grow, Inc. indicate the courts won't change their mind. 
  • Cannabis and hemp operators facing...
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Filed Under: Compliance, Taxes, Finance, Operations

October 01 2019

Everything Cannabis Operators Need to Know About Form 8300

IRS Tax Form 8300 must be submitted by any business that receives $10,000 or more in cash in a single transaction or multiple related transactions.

  • The IRS has been auditing cannabis businesses that do not submit Form 8300.
  • This form needs to be filled out any time a business collects...
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Filed Under: Compliance, Taxes, Finance

September 03 2019

Managing Cannabis Employee and Contractor Payroll with Cash

The 280E regulation forces cannabis operators to pay their employees in cash – here's how to do so safely.

  • Whether members of your workforce is classified as "employee" or "contractor" impacts how you pay them and what taxes you take out.
  • Make sure every employee signs a receipt verifying...
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Filed Under: Compliance, Taxes, Finance, Operations

March 06 2019

Partnership Audit Rules for Cannabis Companies

Businesses that are structured as partnerships for federal income tax purposes have seen their audit activity increase – here's what you need to know.

  • The general rule under the new partnership audit rule is for partnerships to be taxed at the entity level.
  • Companies should factor in new...
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Filed Under: Compliance, Taxes

February 04 2019

METRC Cannabis Tracking, Reporting & Compliance

 

Learn how to use METRC to comply with state reporting and track and trace requirements. 

  • Cultivators, manufacturers, retailers, distributors, testing laboratories and micro-businesses – must comply with the METRC reporting standards.
  • METRC uses standard Radio Frequency Identification...
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Filed Under: California, Compliance

January 31 2019

Tax Preparation Checklist for Cannabis Operators

Follow this checklist to gather everything you need to fill out your  cannabis tax return.

  • You will need your tax returns for prior two years, plus copies of your sales, excise, and local tax returns. 
  • Make sure you have your income statements ready as well as your P&L and balance sheets. 
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Filed Under: Compliance, Taxes

January 24 2019

What to Expect in a Tax Audit

Tax audits are relatively common in the cannabis industry – here's how to prepare for one at your business. 

  • Make sure your sales, inventory, employee, and tax records are detailed and thorough. 
  • Be prepared with historical financial records, receipts, tax returns, and anything else you...
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Filed Under: Compliance, Taxes, Finance