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taxes

September 14 2020

IRS Guidance on Cannabis Businesses

As the cannabis industry continues to transform from being in the shadows to a viable mainstream business, more and more people are looking for guidance on cannabis business tax filings, cannabis CoGS and many other aspects of financial compliance for cannabis businesses.

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Filed Under: Taxes, Finance

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

March 26 2020

Economic Update for Cannabis Businesses

Small business owners around the country are in need of help as more and more states ask their citizens to stay at home. Cannabis is no exception.

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Filed Under: News, Taxes, Business, Operations, Accounting

March 04 2020

Cannabis Excise Tax Calculation Updates for 2020

As of January, 2020, distributors need to know about the CDTFA's changes to California's cannabis excise tax. 

  • Distributors will need to pay the excise tax more frequently, and the basis that they calculate the cannabis excise tax on could be lowered, but the markup on that basis has...
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Filed Under: California, Taxes, Accounting

February 26 2020

Cannabis Industry Chart of Accounts

This index of the financial accounts in the general ledger saves time and stress when tax season rolls around.

  • A COA can generate better, more accurate reporting on your cannabis business performance to help you grow. 
  • Transactions are broken into five main categories: assets,...
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Filed Under: Taxes, Finance, Accounting

January 15 2020

Case Study: Northern California Small Business Assistants, Inc.

The outcome of NCBSA v. CIR shows why it's so important to have a licensed tax expert help with your cannabis business taxes. 

  • NCBSA claimed $1.5 million in ordinary and necessary business expenses on its 2012 tax return. The IRS disallowed the company’s tax deductions under Section...
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Filed Under: Case Studies, Taxes, Accounting

January 08 2020

Case Study: Alternative Health Care Advocates Tax Penalties

AHCA v. Commissioner of Internal Revenue shows that courts are likely to view cannabis management companies as subject to the 280E regulation. 

  • Alternative Health Care Advocates used a cannabis management company to provide HR services. 
  • The court ruled that this management company...
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Filed Under: Case Studies, Taxes, Accounting