The Cannabis Tax Resolution Minicast: Recent Episodes
Desarie Anderson
As Cannabis becomes legal in most states, it's vital that CEOs, investors, and tax & accounting professionals understand the audit risk and tax collection debt that can affect the industry.
Hi everyone and welcome to the Cannabis Tax Resolution Minicast. The topics we cover on this minicast are related to IRS and state tax audits, resolving state and IRS tax debt, and topics around unfiled tax returns. We will also discuss the latest in any tax news that will affect your business both positively and negatively, including a sprinkle of tax planning strategies that will save you money and keep you out of tax trouble.
My name is Desarie Andersonand I am a CPA and an Enrolled Agent. This minicast that tackles a single topic in a bite-sized format. Each cast lasts no longer than 3 to 15 minutes.
Today's topic is titled "How Long Must You Worry About Not Filing a Tax Return?"
By law, all individuals who fit the requirements are required to file a federal and state income tax return, with the exception of those states that do not impose an income tax on their residents like Florida, Texas, Washington State, and six other states. The only individuals not required to file a return are those that don't meet the income requirements. Businesses such as corporations, multi-member LLC, and partnerships, on the other hand, are required to file a return every year even if they made zero income, in which case they will file a return showing zero income.
Today's topic is titled “ How Long Do I Have To Worry About An IRS Audit?” If you are in the cannabis space, you are or should be fully aware that the IRS is making a concerted effort to audit cannabis businesses. Although cannabis sales are still illegal on the federal level, that isn’t stopping the IRS from auditing your business. If your business is set up as a pass-through entity, you can rest assured that they will pull your personal tax return into the audit. Pass-through entities are partnerships, S-corps, and LLC’s.
As we all know, if your business is in the cannabis space, you are not allowed credits, exemptions, or regular deductions.
You are, however, allowed to reduce your gross income by Cost of Goods Sold. So during the audit of a cannabis business, the auditor will check to make sure that you didn’t violate 280E by deducting ordinary and necessary expenses, and they will comb through your cost of goods sold transactions to make sure that you didn’t hide any ordinary and necessary expenses inside of cost of goods sold.
The format of this minicast is going to be a 5 to 15-minute discussion on topics concerning IRS and state tax audits, resolving state and IRS tax debt, also we will be addressing unfiled tax returns and how to get back into tax filing compliance, and we will also cover IRS trust fund recovery issues, which has to do with payroll tax matters.
On today's show, I will give you five tips to ensure that your tax season goes off without a hitch. I know how stressful tax season can be for cannabis businesses, so it's always best to minimize your stress by being as prepared as possible.
On today’s show, I will be talking about Independent contractors vs. W2 employees in the cannabis industry. I’ll be discussing the importance of proper worker classification, what can happen if you fail to correctly classify your worker, how the IRS and state determine proper classification, and how most businesses usually get busted for incorrect worker classification.
On today's show, I’m going to be talking about the albatross around the neck of the Cannabis industry also known as 280E. I’ll also be discussing the concept of apportioning certain 280E expenses to non-cannabis activities, as well as items that can be included in cost of goods sold based on the type of cannabis business you operate.
Hello everyone I'm your host, Desarie Anderson, and today we're going to be talking about form 8300 and how it intersects with the cannabis industry. We'll discuss what the form is, why cannabis operators need to use the form, and the important aspects of the form that cannabis companies need to know.