Category: Marijuana Business

FinCEN Form 8300 and the Marijuana Industry: The Electric Company Complex

Form 8300 and the Marijuana Industry

If you own a cash-business (especially if you work in the marijuana industry – especially as a grower) then this article is for you. I have recently heard from a colleague about a tax issue that has been causing widespread fear across the marijuana industry.  I call it, the Electric Company Complex.  Apparently, electric companies (such as… Read more »

The Newest Threat to the Cannabis Industry: SEP Agents

IRS SEP agents

Since the legalization of medical and recreational marijuana use in several states, owners and operators in the industry have seen a decent amount of financial success in their respective trades. But now it seems as though the other shoe has dropped. These entrepreneurs have also become the target for police raids, IRS inquiries, and just… Read more »

Marijuana Audits and Your Fifth Amendment Rights

marijuana audits

Can A Dispensary Claim Immunity to Avoid Future Criminal Prosecution? A Colorado medical marijuana company has refused to turn over documents to the IRS, citing fears that the records could be used against the company in a criminal proceeding. Standing Akimbo’s lawyer has said the Denver firm will claim the Fifth Amendment if it does… Read more »

How the IRS Audits Marijuana Dispensaries

IRS Marijuana Audit

What to Expect in an IRS Audit of Your Dispensary (or other cash business) Marijuana dispensaries are five times more likely to face an IRS cash business audit. In 1970, lawmakers approved Section 280E of the Internal Revenue Code as a punitive measure in the “war on drugs” which was just starting at the time…. Read more »

How the IRS Audits Income for Cash Businesses

The IRS Has Several Methods for Figuring Out Cash Income When treasury agents get the scent of unreported income in their nostrils, they always use a variation of the good cop-bad cop routine. Sometimes before they even drop the A-word, auditors begin asking seemingly friendly questions about perceived income discrepancies. If they do not get… Read more »