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.


From the NJCPA Focus blog:

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

by Raymond V. Owens, CPA, 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).

Menendez Introduces Cannabis Banking Bill

Posted: April 12, 2019
U.S. Sen. Bob Menendez introduced the Secure and Fair Enforcement Banking Act to enable legal cannabis businesses to access banking services. Currently, legal cannabis businesses can be denied access to the banking system because banks can be prosecuted under federal law.

Special Tax Issues for Cannabis Businesses

Posted: April 10, 2019
It’s tax time for everyone, but for entrepreneurs in the rapidly growing cannabis business, it’s a particular challenge.

Agreement Reached on Legislation to Legalize Adult-Use Marijuana

Posted: March 12, 2019
Governor Murphy and New Jersey legislative leaders have announced an agreement on the broad outlines of legislation to legalize adult-use marijuana in New Jersey, including the tax rate, regulatory structure and expungement provisions.

NJCPA Urges NJ Legislature to Make Tax Code Change if Cannabis is Legalized in New Jersey

Posted: February 13, 2019
If adult-use cannabis is legalized in New Jersey, it is crucial that the state decouples from the federal law governing cannabis — Internal Revenue Code 280(E) — to have a viable cannabis industry.

Democrats Introduce Bills to Legalize and Tax Marijuana at Federal Level

Posted: February 11, 2019
A senator and a representative from Oregon aim to bring state and national cannabis laws into greater alignment.

A New Plan for Taxing Cannabis Could Restart the NJ Legalization Debate

Posted: January 25, 2019
State leaders are now considering a proposal that would tax marijuana by weight, rather than an excise tax on the sale.

Nearly 50 Percent of New Jersey CPAs Say Legalizing Adult-Use Marijuana Would Help the Economy

Posted: January 23, 2019
In a survey conducted earlier this month, 48 percent of the 1,063 NJCPA members who responded said legalizing adult-use marijuana in New Jersey would help the economy, compared to 22 percent who said it would have no impact and 20 percent who said it would hurt the economy.

The Cannabis Opportunity

Posted: January 14, 2019
The risks are lower than many accountants think - and the rewards are greater.

Cannabis Industry Tax Issues Just Got Real

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