CPAs Serving the Cannabis Industry

 

Gov. Phil Murphy's support of legalizing cannabis has prompted CPAs and other professionals to begin figuring out the ground rules of a potential multibillion-dollar industry. Join the NJCPA's new Cannabis Interest Group to gain information, insights and best practices as we wait for the legislative and regulatory process to play out in Trenton.

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From the NJCPA Focus blog:

The Beginning of the End for IRC Section 280E — The FDA Reschedules (Some) CBD Drugs

by Raymond V. Owens, tax manager, Citrin Cooperman | Oct 11, 2018
Accountants would be wise to keep their eyes on IRC Section 280E. If this is the beginning of a trend for the Drug Enforcement Agency, perhaps all businesses operating within the medical cannabis space may soon be able to claim exemption from IRC §280E.

Tax Practitioners Need to Analyze Their Own Risk Appetites Before Servicing the Cannabis Industry

by Raymond V. Owens, CPA, tax supervisor, WithumSmith+Brown | Jul 31, 2018
Tax practitioners will have to examine their appetite for risk before serving clients in the cannabis industry. Education on Internal Revenue Codes will allow tax practitioners to best protect themselves from scrutiny as will understanding the calculation of cost of goods sold (COGs).

Adult-Use Legalization, Medical Marijuana Expansion Bills Approved in Committee

Posted: November 27, 2018
The State Senate Budget and Appropriations Committee and the Assembly Appropriations Committee approved an adult-use cannabis bill Monday after a standing-room-only hearing that lasted nearly five hours and featured a back-and-forth between pro- and anti-marijuana testimony.

Cannabis Industry Tax Issues Just Got Real

Posted: October 10, 2018
A dispensary owner becomes the first person sentenced for marijuana-related tax crimes.

The CPA's Guide to Getting Started in Cannabis Accounting

Posted: August 10, 2018
Equipped with a specialized skill set and sophisticated financial knowledge, CPAs have the opportunity to enter a burgeoning market — projected to reach an economic impact of $70 billion in the U.S. by 2021 — where they can access a new realm of clients in dire need of their help, not to mention a substantial new source of revenue for their firms.

Big Opportunities in Cannabis Clients, Compliance

Posted: August 2, 2018
Experts demystify the very young and evolving industry, and share advice on how to work with potential clients in the business.

Marijuana Retailer Loses in Tax Court Thanks to Inadequate Records

Posted: July 5, 2018
In a recent decision, the Tax Court illustrated the importance of good record-keeping, as well as the continuing barrier the Tax Code poses for the full deductibility of expenses related to marijuana facilities, in Alterman v. Commissioner, T.C. Memo 2018-83.

Statement from the NJCPA About New Jersey’s Cannabis Industry

Posted: June 6, 2018
New Jersey’s expansion of the medical cannabis program and the potential for legalization of recreational use on the horizon brings an increased demand for professional services by certified public accountants. The NJCPA and New Jersey CPAs stand ready to be a resource.

Managing the Risks of Serving Cannabis Clients

Posted: May 16, 2018
As part of your process in assessing “risks,” never forget that your professional acts and decisions will be judged in hindsight. Therefore, if your firm decides to service cannabis clients (or any other higher-risk clients, for that matter), be extremely attentive to malpractice rules.

What CPAs Need to Know About Providing Services to Marijuana Businesses

Posted: April 30, 2018
Providing accounting services to marijuana businesses is full of potential legal and ethical minefields.

Five Reasons Accountants Should Serve Cannabis Clients

Posted: April 13, 2018
The biggest growth industry since cable TV desperately needs good accountants.