Sales Tax Archives - New Frontier

26Aug

Growth Strategy for the Green Ocean

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Setting a new path for market entry into the cannabis industry Cannabis operators who want to shape the future of legal consumption in the United States want to create innovative new products, reach broad new customer sets, and promote positive uses for cannabis to meet the $80 billion market opportunity the industry is chasing. While cannabis […]

05Aug

Up in Smoke: Alpenglow Botanicals, LLC V. United States

Marijuana Insights

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Challenging IRS authority to deny “ordinary and necessary” business expense deductions By Tosin Hassan, CPA, CohnReznick In the words of Lauryn Hill, “It’s funny how money changes a situation, miscommunication leads to complication.” With the explosion of cannabis businesses across the country, many business owners are not profitable because of significant tax bills impacting cannabis […]

22Jul

Beware! Are you in compliance with your cash payments?

Marijuana Insights

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By Mary Amato, CPA, Partner, CohnReznick It is no secret that the Internal Revenue Service (IRS) is aggressively auditing cannabis businesses. The focus is on more than the limitations placed on the industry by IRC §280E. The IRS aggressively audits non-compliance of Reporting of Cash Payments. Form 8300, is not an income tax reporting form. […]

03Jun

Questions and Answers with an Original Licensee Holder

Marijuana Insights

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A discussion of growing pains, regulations, and current product investments By Michael Harlow, CPA, Partner CohnReznick Partner Michael Harlow: Brian, you were one of the first operational dispensaries in Colorado. What is the single largest difference between the early days and now? Brian Rogers: We started in 2009 with one of the first medical marijuana […]

28Apr

How Cannabis Industry Participants Would Benefit if 280E is Rolled Back

Marijuana Insights

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By Michael Harlow, CPA, Partner 280E is the Internal Revenue Code section that has been the focus of every tax discussion related to the cannabis industry for the past 15 years. It is the Code section that prohibits cannabis companies from deducting any ordinary and necessary business expenses from gross profit when calculating federal taxable […]

25Mar

Planning for the Coming Consolidation in the Cannabis Industry

Marijuana Insights

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By Michael Harlow, CPA, Partner In today’s Cannabis marketplace, we continue to hear one overarching theme. The industry buzz on everyone’s lips is about “the future consolidation of the industry. This is driven by several factors: strong customer and revenue growth for retailers, price compression for wholesalers, an expected change in the legal landscape, new […]

24Mar

Discussing Proven Methods and Occasional Madness in Forecasting State Tax Revenues

Marijuana Insights

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By Beau Whitney, Senior Economist & J.J. McCoy, Senior Managing Editor for New Frontier Data What We Have Learned: Forecasting tax revenue entails more than simply taking the tax receipts from previous months, annualizing sales, and then projecting the numbers forward. July 16, 2017 — Recently, New Frontier Data’s Senior Economist Beau Whitney was invited by […]

24Mar

Hedging One’s Bets Makes Sense and Can Save a Fortune in the Cannabis Tax Arena

Marijuana Insights

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By Ken Boiarsky, Hoban Law Group tax attorney What We Have Learned: While the rapidly changing environment and continuing development of law within the cannabis arena makes predictability somewhat problematic, a lawyer suggested a hedge not often used, but probably ought be. August 24, 2017 — It should come as no surprise that cannabis businesses […]

23Mar

In Canada, Trudeau’s Per-Gram Tax Would Make Less Sense Than Legitimate Sales

Marijuana Insights

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By Beau Whitney, Senior Economist of New Frontier Data What We Have Learned: To eliminate the illicit market, Canada would be better off not taxing grams, but focusing on taxing retail receipts Among lawmakers and economists, devising tax policy is a fundamental topic and a relatively simple task. Yet given the nascent markets and unsettled […]

22Mar

Cannabis Businesses’ Bane of 280E

Marijuana Insights

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By Michael Harlow, CPA, Partner What We Have Learned: Ancillary, non-plant-touching businesses in the industry enjoy a variety of federal and state tax opportunities and incentives often not utilized to maximum benefits. To quote Benjamin Franklin, “In this world nothing can be said to be certain, except death and taxes,” and people in the cannabis […]