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Date / Time / Location

Thursday, November 21, 2019
8:30 AM - 4:30 PM
Registration: 8:00 AM

DoubleTree Suites by Hilton515 Fellowship Road North
Mount Laurel, NJ 08054-3404
856-778-8999

CPE Credits

  • 2.00 CPE Credits in AA
  • 6.00 CPE Credits in TX

Pricing

  • $279.00 - Member
  • $379.00 - Non Member
In the first part of the program, participants will learn how to advise clients to select a proper entity and how to structure the formation to reduce or eliminate immediate taxation. One of the biggest tax mistakes made by businesses involves the selection of an inappropriate entity type or not properly handling the rules that apply to allow certain structures to be formed tax free.

The second part will cover accounting, auditing and tax considerations specific to the Cannabis Industry. States have been passing legislation that legalized cannabis for medicinal and recreational use and the producers and retailers in this industry have been growing. Accounting and financial professionals are not tasked with navigating the often-contrary state and federal laws. With cannabis being classified as a Schedule 1 controlled substance under the Federal Controlled Substances Act of 1970 and subject to federal prosecution, can CPAs offer services to clients that operate in this industry? If the CPA does offer services, what are the major tax issues (federal and state) that impact this industry? This course will answer these questions as well as provide the guidance that accounting professionals need to know to offer services in the cannabis industry.

Designed For

Accounting or financial professionals that work directly or indirectly in the cannabis industry or is interested in learning more about how this recent state legislation is impacting the accounting profession.

Benefits

  • Explain the advantages and disadvantages of various business structures
  • Recognize new businesses that could be formed to allow a tax-free exit via Section 1202
  • Properly report the transactions related to business formations on tax returns
  • Understand the risks of taking on a client in the cannabis industry
  • Recognize state reporting rules
  • Recognize federal reporting rules
  • Differentiate between the federal and state filing requirements
  • Understand IRC Section 280E and what deductions are and not allowed to a cannabis business
  • Apply various state sales and excise taxes that apply to the sale of cannabis
  • Recognize why banks won’t allow cannabis-based businesses to open a bank account
  • Understand the treatment of revenue and inventory
  • Understand audit considerations
  • Understand sustainability reporting issues

Highlights

  • The types of business entities that the Internal Revenue Code knows about
  • The special case of the limited liability company (LLC) and applying the check-the-box regulations
  • Advantages and disadvantages of the various entity types
  • Tax free incorporation under IRC Section 351 and what can turn the formation in to a taxable event
  • Tax free formation of a partnership under Section 721 and the special related problems found in Section 740(c) with regard to any unrecognized gain/loss
  • Business types qualified for Section 1202 treatment as a C corporation and the benefits conferred on such entities
  • Types of cannabis related businesses
  • Risk considerations for services offered in the cannabis industry
  • Recognizing what costs are and not considered costs of sales under IRC Section 280E
  • Recognize if the entity conducts a business separate from the cannabis sales that may allow some deductions aside from cost of sales
  • State and federal tax differences
  • Cash based business audit considerations
  • Financial reporting considerations

Course Level

Intermediate

Prerequisites

Experience advising clients on tax matters. Basic auditing, accounting, and tax experience.

Advance Preparation

None

Additional Notes

Course materials are distributed electronically and we’ve passed the savings along to you - registrants save $20 on all 8-hour seminar pricing. To access the materials visit My Events. Download to your laptop or tablet prior to the seminar, handouts are added as received.
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Edward Zollars

Edward K. Zollars, CPA
Tax and Technology Partner
Thomas Zollars & Lynch, Ltd.

Edward K. Zollars, CPA, is in public practice in Phoenix, Arizona, as a partner with the firm of Thomas, Zollars & Lynch, Ltd. He has been in practice for over 25 years, specializing in tax issues for closely held businesses and individuals. Ed has been professionally involved with both tax and technology issues, combing the two disciplines in producing the Current Federal Tax Development Update podcast and website, dealing with current tax issues. He has been a member of AICPA Tax Division Committees, dealing with tax and technology issues, and was the Tax Section’s representative on three occasions to the AICPA’s Top Ten Technologies project. Ed is also a member of the Phoenix Tax Workshop’s Advisory Committee, and currently serves on the Tax Legislation Liaison Committee for the Arizona Society of CPAs. Ed was selected as a Life Member by the Arizona Society of CPAs in May of 2010. Along with writing, editing, and presenting courses for Nichols Patrick CPE, Inc., for over the past 10 years, Ed has written articles published in Practical Tax Strategies and The Tax Adviser. He has been a frequent contributor to a number of professional tax discussion groups and served as systems operator on the AICPA’s Accountants Forum in the mid-1990s. Ed has spoken regularly on tax and technology topics since 1996, speaking before conferences sponsored by the AICPA and a number of state society of CPAs.

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