Entries by Tax Attorney

Could California Finally Get Cannabis Tax Reform?

In a previous blog we reported that the California Department of Tax and Fee Administration (CDTFA) which oversees the reporting and collection of taxes for the California cannabis industry after conducting an analysis of statewide market data to determine the average mark-up rate between the wholesale cost and the retail selling price of cannabis and […]

When Facing An IRS Tax Audit, How Do Marijuana Businesses Explain To IRS A Cash Stash Accumulated From The Past?

With the proliferation of licensed cannabis businesses sprouting in the State Of California and a growing number of States, a lot of cannabis business will be filing tax returns with the IRS for the first time. But beware, the IRS is well aware that successful cannabis businesses don’t just sprout overnight and now that your […]

Starting In 2020 New Worker Classification Law Takes Effect In California

Starting In 2020 New Worker Classification Law Takes Effect In California On January 1, 2020, Assembly Bill 5 (AB 5) went into effect and may impact whether your workers are treated as employees or as independent contractors under California law. In 2018, the California Supreme Court adopted “the ABC test” in Dynamex v. Superior Court. […]

Riverside County Sheriff’s Office Releases Its Report Card On 2019 Illegal Cannabis Eradication Activity

Anyone conducting business in cannabis surely knows that under Federal law (Controlled Substances Act 21 U.S.C. 801) marijuana is designated as a Schedule I controlled substance due to the historical belief that it has a high potential for abuse, no currently accepted medical use in treatment, and lack of accepted safety for use under medical […]

Major League Baseball To Remove Cannabis From List Of Banned Substances – If You Can’t Beat Them, Then Join Them!

Under Federal law (Controlled Substances Act 21 U.S.C. 801) cannabis is designated as a Schedule I controlled substance due to the historical belief that it has a high potential for abuse, no currently accepted medical use in treatment, and lack of accepted safety for use under medical supervision. The federal penalties for possession of any […]

IRS Criminal Investigation Division Releases Its 2019 Annual Report

IRS Criminal Investigation Division Releases Its 2019 Annual Report On December 5, 2019 the IRS released the Criminal Investigation Division’s (CI) annual report, highlighting significant successes and criminal enforcement actions taken in fiscal year ending September 30, 2019. In issuing this report IRS Commissioner Chuck Rettig states: “CI is critical to the overall enforcement efforts […]