If you haven’t had the chance to attend one of our 420 workshops, here’s an opportunity for you to view the DEC that we used at one of our earlier shops.
Although the sale of marijuana is legal in several states, it continues to remain illegal under federal law. Internal Revenue Code 280E prohibits most deductions and tax credits given to “normal” businesses. The impact can be frightening. These past few tax seasons we have already seen federal tax rates of 55% to more than 80% of MJ business income. It’s a ridiculous and unfair liability, HOWEVER that is the direct result of 280E.
Just this year alone we have seen many new marijuana business owners calling us because they have received notices from the IRS disallowing expenses. After reviewing their tax return we can easily spot the errors. They chose the wrong tax professional! All expenses were treated the same and deducted from their return. OMG! Needless to say, the IRS notice indicated that the marijuana tax return review resulted in $1,000’s of additional taxes due. While we were able to help these business owners mitigate their amounts due, they are now subject to future (and past) reviews of their tax returns.
You are trying your best to grow your business and remain legal and compliant. If you have the wrong person doing your tax returns (or your accounting) you are subjecting yourself to IRS scrutiny. We assure you that we will save you enough in taxes to easily pay for our fees. Don’t become a statistic!