The IRS and Cannabis – 2021 and Onward: Federal Tax Procedure – Audit, Dispute, Resolution: Part 1
“Preparation time is never wasted time.” Anonymous__________________________________________________________________ Part I – “The IRS Audit Process” is the first of a 3-Part Series on “Federal Tax Procedure- Audit, Dispute, Resolution for the Cannabis Industry for...
The IRS and Cannabis – 2021 and Onward: Federal Tax Procedure – Audit, Dispute, Resolution – Introduction
“Preparation time is never wasted time.” Anonymous__________________________________________________________________ This Introduction precedes a 3-Part Series on “Federal Tax Procedure- Audit, Dispute, Resolution for the Cannabis Industry for years 2021 and Onward.”...
Federal Tax Deadline Extended to May 17th, 2021 for INDIVIDUALS ONLY (NOT C Corps, Trusts, & Estates)
The IRS announced a change in the deadline for certain federal tax return and payment due dates. Here is what is extended as of this posting (March 19, 2021): 2020 Individual 1040 returns are now due May 17, 2021 2020 Individual 1040 tax payments are now due May 17,...
Cannabis Taxpayers Find Flaws in New Accounting Method Rules
Reproduced with permission. Published March 04, 2021. Copyright R 2021 The Bureau of National Affairs, Inc. 800-372- 1033. For further use, please visit https://www.bloombergindustry.com/copyright-and-usage-guidelines-copyright/...
FORM 8300 (Cash payments received of over $10,000)
Summary In the cannabis industry, due to lack of banking, cash has truly been king. Compliance is critical when receiving large amounts of cash from customers as the penalties can be cost prohibitive to operating your business. We’ve offered a short guide here to...
How Auditors “Prove” You Didn’t Pay Your Taxes – Lack of Banking Presents Even More Obstacles in Cannabis Industry
Innocent until proven guilty… NOT. When it comes to paying taxes, auditors have an advantage: you have to prove you filed your taxes correctly; once you do, it's their job to show your proof is wrong. You gave them your point of sale records, bank statements (if your...
Federal Tax Filing Deadlines for 2021
An earlier version of this blog had the wrong date for FBAR. It should be April 15, 2021. Please accept our apologies for the inconvenience. The IRS will begin accepting and processing 2020 tax year returns on Friday, February 12, 2021. Please note FEDERAL INCOME TAX...
Cannabis Rates to Remain the Same on January 1, 2021
Source: CA Department of Tax and Fee Administration Due to new legislation, Assembly Bill 1872 (Stats. 2020, ch. 93), the cannabis excise tax mark-up rate and the cultivation tax rates will not change on January 1, 2021. Cannabis Excise Tax Mark-up Rate The cannabis...
A 39-Item Tax and Accounting Year-End Checklist for Your Small Business
Keeping your accounting records up to date all year long is essential for any business so you can see exactly where your business stands and be able to make thoughtful decisions based on clean numbers. At year-end, there are a few extra accounting tasks to finish so...
Limits on the Installment Method of Accounting For Gain
When a seller is paid over several years, she may be eligible to report some of the gain pro rata with each installment, rather than all at once. See IRC §453(c) (installment method defined). However, the installment method is not always available. In some cases,...