Sales Tax Archives - New Frontier

05Aug

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

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?

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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

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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

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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

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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

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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

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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

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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

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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 […]

22Mar

What Proposed Tax Cuts Mean for Cannabis: Only a Bill?

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By Selvan Boominathan, JD, LLM What We Learned: A December 2017 review of the proposed Republican tax cuts suggested how politicians would not touch 280E, but still help the legal cannabis industry. In a prior post, we discussed how federal income tax applies to cannabis businesses and the huge burden imposed by Section 280E. You […]