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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Friday, March 1, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00

This course is $0 with these passes:

CLE
CPE
ALL

This CLE/CPE webinar will provide tax counsel and advisers guidance on handling tax compliance issues for cannabis retailers and provide effective tax planning methods for businesses engaged in the cannabis industry. The panel will discuss key federal and select state tax law provisions impacting cannabis businesses, the impact of rescheduling cannabis from a Schedule I to Schedule III drug, Section 280E, and key tax planning techniques to avoid or minimize tax liability.

Faculty

Mitzi S. Keating
Partner - Founder of the Cannabis Advisory Services Practice
Citrin Cooperman Advisors, LLC

Ms. Keating is a partner in the firm’s Rhode Island office and Founder and Co-Leader of the Cannabis Advisory Services Practice. She has over 20 years of experience providing accounting and audit services, tax planning, business consulting, and forensic services. Ms. Keating is known across the country as a cannabis industry expert in matters of financial due diligence, accounting, tax, and other financial challenges faced by operators, regulators, investors, and others ancillary to the cannabis industry. She is a regular speaker and presenter at national cannabis conferences, has published many articles, videos, and podcasts, and is an author of the Massachusetts Cannabis Law Manual.

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Katye MaxSon-Landis
Director
Citrin Cooperman Advisors, LLC

Ms. MaxSon-Landis is a director in the firm’s Rhode Island office and an experienced cannabis professional with over 15 years of experience providing accounting and tax services, with over 10 years in the cannabis industry. She is experienced in IRS audit defense, tax planning, and the unique complexities in cannabis taxation, having been a veteran cannabis CPA in the state of Oregon since its early days of legalization.  Ms. MaxSon-Landis brings her vast knowledge of the industry and its nuances to clients across the country.

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Description

The sale and distribution of cannabis for recreational or medical use have become a powerful economic engine generating billions in annual revenue with a majority of states and the District of Columbia having some form of legalization of the substance. Despite state relaxation of marijuana prohibition laws, without careful planning, the taxation of cannabis retail businesses can result in hefty tax assessments and penalties.

Cannabis businesses are accounting for and reporting the results of their operations with gross receipts, cost of goods sold (COGS), and other deductions just like other for-profit businesses. However, under Section 280E, cannabis businesses cannot deduct rent, wages, and other expenses unless it is for COGS, resulting in a substantially higher tax rate than other companies on their income.

Recently, the Department of Health and Human Services recommended to the Drug Enforcement Administration that cannabis be reclassified as a Schedule III drug under the Controlled Substances Act (CSA). This reclassification of cannabis from Schedule I to III under the CSA will provide significant opportunities for businesses grappling with complex federal and state tax rules.

Listen as our panel discusses federal and select state tax rules impacting the cannabis industry, the impact of rescheduling cannabis from a Schedule I to Schedule III drug, Section 280E, and key tax planning techniques to avoid or minimize tax liability.

Outline

  1. Federal and state tax law issues for retail cannabis businesses
  2. Key planning strategies to minimize tax liability and avoid audits
  3. Section 280E
  4. Ownership structures
  5. Deductions
  6. Navigating IRS examinations of retail cannabis businesses

Benefits

The panel will review these and other key issues:

  • Recent court decisions impacting the taxation of cannabis businesses
  • Application of tax rules to the cannabis industry and key planning techniques
  • Structuring the ownership of cannabis businesses to minimize tax
  • Key issues raised in IRS audits and methods to avoid them
  • Effect of Section 280E and deduction of the cost of goods sold

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Understand the IRS' analysis and application of tax rules to the cannabis industry
  • Identify key issues resulting in IRS audits of cannabis operations and methods to avoid them
  • Recognize the impact of Section 280E on cannabis business operations

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing foreign tax forms and schedules at mid-level within the organization, supervising other preparers/accountants. Specific knowledge and understanding of current rules for calculating taxable income of corporations and pass-through entities. Understanding of federal and state audit procedures, allocation and apportionment of income.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).