As cannabis accounting professionals, we get a number of inquiries from cannabis businesses that insist that they can cut corners and tip-toe around the rules.
Here’s the thing… CANNABIS IS STILL ILLEGAL.
The first federal sentencing of a legal marijuana business owner for tax crimes is set to take place on November 1st. Partial owner of Cannabliss Dispensary in Eugene OR, Matthew Price has been sentenced to federal prison and $263K in restitution by the IRS.
No matter how many people advised him not to, Mr. Price was caught for failing to report nearly $1M dollars in company income when he commingled the money with his personal expenses. Buying sports cars, Rolex watches, vacations, and even homes were just some of his 'business' purchases.
As an accounting professional, YOU are the expert. It's important that you help your clients understand the importance of proper accounting in this industry and the repercussions of negligence. The problem is that most of the time CEO’s just aren’t aware of the rules, so it is up to you to educate them (and yourself) on the ever-changing tax landmines that plague the cannabis industry.
Let us know your thoughts when you watch the video HERE.