Gain crucial insights into navigating the complex tax landscape of the cannabis industry.
Businesses in the evolving cannabis industry are subject to federal and state taxes unlike any other industry. These taxes and their enforcement have continued to evolve and today we see new possibilities with the industry challenging federal authority and Congress’ creation of Section 471(c). Attendees of this presentation will gain crucial insights into navigating the complex tax landscape of the cannabis industry. We’ll explore how the Section 471(c) Method of Accounting intersects with Section 280E of the U.S. Internal Revenue Code, offering potential solutions to mitigate its impact on COGS. Additionally, we’ll delve into the legal challenges, such as the Gonzales v. Raich case, questioning federal authority over marijuana regulation and its implications for the industry. Finally, we’ll address Uncertain Tax Positions, emphasizing the importance of disclosure and the role of tax opinions. By attending, participants will be equipped to navigate these challenges effectively, ensuring compliance and optimizing financial outcomes.
Learning Objectives
- You will be able to define Section 471(c) Method of Accounting and its relevance to the cannabis industry’s taxation challenges.
- You will be able to describe the impact of Section 280E of the U.S. Internal Revenue Code on deductions and Cost of Goods Sold for Schedule 1 or 2 controlled substances.
- You will be able to discuss the Gonzales v. Raich challenge and its implications for federal regulation of marijuana under the controlled substances act and interstate commerce clause.
- You will be able to explain the requirements for adequate disclosure of uncertain tax positions, including Forms 8275 and 8275R, and the role of a tax opinion in supporting these positions.
Agenda
Introduction
Section 471(c) Method of Accounting
- Explanation of Section 280E of the U.S. Internal Revenue Code
- Impact of Section 280E on the Cannabis Industry
- Overview of Section 471(c) and Its Implications
- Discussion on How Section 471(c) May Impact COGS
The Gonzales V. Raich Challenge
- Background of the Raich Challenge and Recent Developments
- Analysis of Justice Thomas’s Questioning of Federal Authority
- Overview of Lawsuits Challenging Federal Authority
- Discussion on Amended Tax Returns and Implications for Section 280E
- Exploration of Raich, the Interstate Commerce Clause, and Its Impact on
- Cannabis Companies
Uncertain Tax Positions
- Explanation of Uncertain Tax Positions Related to Raich Challenge and Section 471(c)
- Importance of Disclosure to the IRS
- Overview of Forms 8275 and 8275R
- Role of Tax Opinions in Claiming Potentially Incorrect Tax Positions
Rescheduling
- What Is Schedule 3?
- Section 280E
- Retroactive?
Conclusion
Speakers
Nick Richards, Esq.,
Greenspoon Marder LLP- Tax attorney, partner, and co-chair of the Cannabis Law practice group at Greenspoon Marder, LLP
- Practice focuses on tax, cannabis, and regulatory compliance & defense
- Represents individuals and businesses in tax audits & trials, M&A, and managing tax debt
- Advises cannabis companies, owners, and investors on tax and regulatory compliance matters
- Over twenty years of experience as a tax attorney, starting with the IRS where he served as a leading trial attorney, Chief Counsel advisor, and Special Assistant United States Attorney
- Proficient in all phases of the tax system, from reporting and assessment to appeals, court representation, and tax debt resolution
- Teaches tax attorneys and CPAs nationwide and serves as an Adjunct Professor of Law at the University of Denver, Graduate Tax Program
- Recognized as a leading cannabis industry attorney with expertise in IRC Section 280E and BSA cash reporting requirements
- J.D. degree, Lewis & Clark College; B.A. degree, University of California, Santa Barbara
Who Should Attend
This live webinar is designed for accountants, CPAs, CFOs, controllers, tax managers, presidents, vice presidents, business owners and managers, bookkeepers, and attorneys.
