Filtered by tag "Taxes"

Tax Incentives for Cannabis Companies

By Marshall Varano, Partner, CohnReznick LLP The recent passage of the 2018 Farm Bill descheduled industrial hemp and its derivatives. This new law, combined with the pending bipartisan bill, the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, (which if passed would provide similar legal protections for cannabis where legalized), is paving the way […]
Read more

Cannabis Banking: SAFE Banking Act Gets a Hearing

By Michael Harlow, Partner, CohnReznick   Last week, Congress held its first-ever hearing on the issue of cannabis banking, titled “Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses.” The hearing before the House Subcommittee on Consumer Protection and Financial Institutions addressed a draft of the Secure and Fair Enforcement Banking Act  (SAFE Banking [...]
Read more

Impact of Supreme Court’s Wayfair Decision on the Cannabis Industry

By Ben Wexler, CohnReznick, State and Local Tax Services On June 21, 2018, the United States Supreme Court decided South Dakota v. Wayfair, Inc., 585 U.S. __ (2018). In a 5-4 decision, the Court found in favor of the State of South Dakota and overturned its prior holdings in Quill Corp. v. North Dakota, 504 […]
Read more

Ask Our Experts 2/10/2019: Why A Cannabis LLC Beats a C-Corp

By Beau Whitney, Senior Economist, New Frontier Data   Q: Why Does A Cannabis LLC Beats a C-Corp? A: With the deployment of the Trump tax cuts in late 2017, there was a renewed focus on how a company’s business structure can reduce overall tax liabilities. Taxes are one of the biggest expenses outside of […]
Read more

Hemp Update: 2018 in Review

Hemp Update: 2018 in Review by Hoban Law Group attorneys Patrick Goggin and Matthew Smith More than a decade since its seminal ruling in HIA v. DEA II (2004), the Ninth Circuit again weighed in on hemp issues in 2018. Last time around, the Court invalidated a proposed DEA rule that would have prohibited the […]
Read more

Considerations for Cannabis Stakeholders in Light of Harborside Health Center Decision

Considerations for Cannabis Stakeholders in Light of Harborside Health Center Decision By Selvan Boominathan, Manager, National Tax Services, for CohnReznick Late last year, the Tax Court published its opinion in Patients Mutual Assistance Collective Corp. (d.b.a. Harborside Health Center) v. Commissioner, 151 T.C. 11 (2018). Harborside is a medical cannabis dispensary operating legally under [...]
Read more

Back to Basics: Laurel Alterman and William A. Gibson v. Commissioner of Internal Revenue

By Greg Pelucacci, CohnReznick senior associate In the rapidly growing industry of cannabis, there are several important concepts for owners to understand. One of the most popular topics would be Internal Revenue Code (IRC) Section (§) 280E: Passed in 1982, that code section prohibits companies that traffic Controlled Substances Act (CSA) Schedule I or II […]
Read more

Growth Strategy for the Green Ocean

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 […]
Read more

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 […]
Read more

Beware! Are you in compliance with your cash payments?

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. […]
Read more
Top