Entries by Tax Attorney

New Tax Benefit Available for California Qualified Licensed Cannabis Retailers Beginning January 1, 2023

Beginning January 1, 2023, the responsibility for collecting and paying the cannabis excise tax to the California Department of Tax and Fee Administration (CDTFA) shifts from distributors to cannabis retailers.  Additionally, given this new responsibility for cannabis retailers, CDTFA is offering a 20% vendor compensation to those qualified cannabis retailers who apply. What Must California Retailers Do […]

Biden Signs Marijuana Research Bill Into Law – If You Can’t Beat Them, Join Them!

The Medical Marijuana and Cannabidiol Research Expansion Act is the first standalone federal marijuana reform law enacted since the adoption of the Controlled Substances Act in 1971. The Act was signed into law by President Joe Biden on December 2, 2022.  It had passed the House of Representatives in July 2022 by a strong bipartisan […]

IRS Examinations Of Cannabis Businesses Expected To Rise In 2023 – Are You Ready For An I.R.C. § 280E IRS Tax Audit?

Under the Inflation Reduction Act the IRS is receiving $80 billion in new funding. Speaking at an IRS facility in New Carrollton, Maryland on September 15, 2022, Treasury Secretary Janet Yellen stated that “the Inflation Reduction Act finally provides the funding to transform the IRS into a 21st century agency,” Yellen said.  “While all the improvements […]

Bipartisan Marijuana Research Bill On Its Way To President Biden For Signature Into Law – If You Can’t Beat Them, Join Them!

On November 16, 2022 the Senate passed by voice vote the Medical Marijuana and Cannabidiol Research Expansion Act, a bill introduced by Senators Dianne Feinstein (D-Calif.), Chuck Grassley (R-Iowa) and Brian Schatz (D-Hawaii) to expand research into marijuana-derived medications. The goal of the bill – which passed the House of Representatives in July 2022 by a […]

How Did Cannabis Fare In The November 2022 Elections?

The November 2022 Elections gave voters in five states—Arkansas, Maryland, Missouri, North Dakota and South Dakota—the opportunity to decide on whether they want to legalize adult-use marijuana. Here are the results …. Arkansas – FAILED Maryland –PASSED Missouri – PASSED North Dakota – FAILED South Dakota – FAILED The Growing Trend In Legalizing Cannabis – […]

New Responsibilities for Cannabis Retailers Beginning January 1, 2023

Beginning January 1, 2023, the responsibility for collecting and paying the cannabis excise tax to the California Department of Tax and Fee Administration (CDTFA) shifts from distributors to cannabis retailers. What Must California Retailers Do Before January 1, 2023 In December 2022, CDTFA will automatically register cannabis retailers and microbusinesses that sell cannabis or cannabis products at […]

IRS Criminal Investigation Division Releases Its 2022 Annual Report

IRS Criminal Investigation Division Releases Its 2022 Annual Report On November 3, 2022 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, 2022.  The IRS noted that a key achievement was the identification of over $31 billion in tax fraud and other […]