A “marijuana tax attorney” would have been unimaginable ten years ago. Many cannabis industry experts and dispensary owners today are concerned about how to meet their tax obligations in good faith without paying more than is necessary. This is because things are changing so drastically and quickly. The necessity for a cannabis tax attorney is all but necessary given the present tax landscape, which has traps around every corner.
If you work in the cannabis industry, you must consult with a cannabis tax attorney frequently to make sure you’re abiding by all applicable state and federal laws, protecting your interests, and minimizing your liabilities. Without further ado, here are the top 3 reasons you should pick up the phone and contact a cannabis tax lawyer at Polston Tax to safeguard your company and assets from retaliatory government action.
1. You Are Aware Of The Numerous Tax Issues Facing Marijuana Dispensaries
There is little doubt that federal authorities have cracked down severely on clinics that don’t strictly adhere to the letter of the law. Congratulations if you work in the cannabis industry! You are a part of a brand-new era of invention and entrepreneurship in the history of this nation. However, dealing with a constantly changing legal environment and increasing liability as a result of cannabis still being illegal at the federal level is an undesirable side effect of being at the forefront of change. So, how do marijuana businesses pay their taxes?
“Very cautiously,” is the response. Cannabis tax issues can range from incorrectly (or fraudulently) submitted forms, simple overpayments, or ineffective business structuring, all the way up to substantial federal government penalties. Although many states offer some tools to assist you in understanding cannabis tax rules, the information is quite thick and may not immediately alleviate your confusion or instill confidence in you as you work to file your cannabis tax returns. Consider hiring an experienced cannabis tax lawyer to handle this task on your behalf rather than attempting to go through the thousands of pages of the material provided by the state.
2. You Don’t Understand 280e Tax Deductions
Section 280E of the tax code may attract you if you’re in a marijuana company. Simply put, this rule bans cannabis-based corporations from claiming legitimate tax deductions. Effective tax rate hammers marijuana industry owners.
There is a tiny body of precedent that shows certain deductions may be allowed if they are related to the firm’s “cost of goods sold” This complex matter should only be handled by a tax professional if you don’t want to risk your business and personal finances on an untested area of law (as it applies to this new industry). Avoid determining if Section 280E applies to your cannabis business. To understand how this clause affects your firm, see a cannabis tax attorney.
3. You Need A Cannabis Dispensary Tax Attorney To Advance Your Interests
If cannabis tax concerns are a worry for you originating from your company, that’s great. It is just sensible to take charge of your taxes and finances if you work in the cannabis sector. You might be shocked to learn that hiring a cannabis tax attorney to represent and safeguard your company is less expensive than you might have anticipated. The legal services effectively pay for themselves when you consider the responsibility restriction (and legal duty reduction) that a competent attorney may bring to the table.
For creating or running a cannabis business in the twenty-first century, you deserve praise. Don’t lose sight of the fact that cannabis is still a federally illegal substance and takes incredibly skillful legal maneuvering to properly satisfy and optimize its associated tax requirements although it appears to be part of mainstream society in some areas of the state.