Entries by Tax Attorney

How IRS Trains Its Agents To Conduct Audits Of Cannabis Businesses

In January 2015, the IRS issued a memo to provide guidance to its agents on conducting audits of cannabis businesses addressing whether an IRS agent can require a taxpayer trafficking in a Schedule 1 controlled substance to change its tax accounting to conform to IRC section 280E.  Not surprisingly that the IRS ruled that IRS […]

Justice Department Sues to Shut Down Florida Tax Return Preparers

Justice Department Sues to Shut Down Florida Tax Return Preparers The U.S. Attorney’s Office for the Southern District Of Florida announced on February 23, 2021 in a press release that the Justice Department (DOJ) filed a complaint in the U.S. District Court for the Southern District of Florida seeking to bar three Miami Gardens-area tax […]

If You Can’t Beat Them Join Them – States Trending Green In February 2021.

Following election results last Fall, this month New Jersey, Alabama and Virginia legislatures are moving forward to enact legislation legalizing and regulating cannabis. Alabama – The Alabama Senate on February 3, 2021 approved a bill to legalize medical marijuana in the state.  This latest proposal would establish an 11-member Alabama Medical Cannabis Commission to implement […]

Tax Relief During COVID-19: How taxpayers struggling with tax debts can benefit.

Tax Relief During COVID-19: How taxpayers struggling with tax debts can benefit. If you are struggling financially because of the pandemic you should tap into the IRS’ newest program – the “Taxpayer Relief Initiative” – with its expanded taxpayer options for making payments and alternatives to resolve balances owed. On November 2, 2020 The Internal […]

Cannabis Operators Deemed “Essential” in California And Are Eligible To Receive The COVID-19 Vaccine

Cannabis Retailer workers have been moved up to PHASE 1A in Governor Newsom’s COVID-19 Vaccine Allocation Guidelines released February 4, 2021. Updated COVID-19 Vaccine Allocation Guidelines Based on available supply, individuals described below are or will be eligible for COVID-19 vaccines: Phase 1A, all tiers Phase 1B, Tier 1: Persons 65 years of age and […]

Recovery Rebate Credit: What you need to know before filing your 2020 income tax returns

Recovery Rebate Credit: What you need to know before filing your 2020 income tax returns The Recovery Rebate Credit is authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the COVID-related Tax Relief Act. It is a tax credit against your 2020 income tax. Generally, this credit will increase the amount of your tax […]

Tips For Cannabis Businesses To Prepare for the 2020 Tax Filings

On January 15, 2021, the Internal Revenue Service (IRS) announced that it will process 2020 tax returns beginning February 12, 2021. April 15th Filing Deadline. The filing deadline to submit 2020 tax returns is Thursday, April 15, 2021. Since the IRS will begin processing tax returns on February 12th there is no advantage to filing […]