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Tag: marijuana dispensary

Marijuana Dispensary Audits And Your Fifth Amendment Rights

marijuana audits

[et_pb_section bb_built=”1″ admin_label=”section”][et_pb_row admin_label=”row” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_text background_position=”top_left” background_repeat=”repeat” background_size=”initial” _builder_version=”3.0.100″ background_layout=”light”] 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… Read more »

Evaluating The Evidence In An IRS Audit

How Do Auditors Decide What’s Next? After the background check, personal interview, document review, and other cash business audit steps, there is usually a significant discrepancy between the taxpayer’s declarations about business income and the auditor’s views on this subject. These discrepancies are especially common in marijuana dispensaries. These businesses, and their employees, are so… Read more »

Key IRS Cash Business Audit Techniques

Marijuana dispensary cash briefcase

IRS Methods for Reconstructing Cash Income in a Tax Audit After the Service has targeted a cash business for audit, laid a foundation, examined applicable records, and interviewed the taxpayer, the nitty gritty begins. The auditor will indirectly reconstruct business income if the records are inadequate, inconsistent with the interview answers, or otherwise suspect.

Some Common IRS Audit Questions for Cash Businesses

IRS Audits Marijuana Business

Questions to Expect if Your Marijana Business Gets Audited When an IRS agent audits your marijuana dispensary (or other cash business) and says s/he has a few questions, it’s almost never about the proper strain for anxiety or muscle pain. In fact, since the IRS has already completed most or all of the groundwork, this… Read more »