State & Local Regulation

Regulations imposed by state agencies and local governments requires a detailed and daily compliance plan managed and maintained by experienced professionals that is backed up with diligent and accurate record keeping. Learn how we can help maintain compliance to avoid license suspension and penalties.

Banking Challenges

Many banks remain reluctant to do business with businesses in the cannabis industry and as it is with any cash-based business, the IRS scrutinizes the amount of gross receipts to report and it is harder to prove to the IRS expenses paid in cash. Learn how we can help set up the proper facilities and procedures to maintain an adequate system to overcome these challenges.

Federal Prosecution

Despite legalization by a growing number of states, the cultivation, distribution and sale of cannabis at the Federal level is an unlawful activity that could lead to criminal prosecution. Learn how we can help limit this exposure and position your business with the lowest risk possible.

Tax Challenges

Despite a growing number of States legalizing cannabis, the Internal Revenue Code still taxes cannabis businesses differently that without the proper planning could result in paying at least three times as much in taxes as a non-cannabis business. Learn how we can help reduce your taxes.

Why Use a Cannabis Tax Attorney?

The legal and tax challenges to operate a successful cannabis business are enormous – one wrong mistake may result in serious consequences.

High Stakes Cannabis Tax Planning & Defense.

The Law Offices Of Jeffrey B. Kahn, P.C. is a full service cannabis law firm representing our clients in high stakes cannabis business and tax issues.

As the legalized cannabis industry continues to develop, early entrepreneurs face uncertain federal enforcement and everchanging local and state regulations.  California along with a growing number of other states may well be a cannabis-friendly state but it still remains a Schedule 1 narcotic under Federal law. Despite the risk of criminal prosecution at the Federal level, cannabis businesses are still obligated to pay federal income tax on income because the Internal Revenue Code does not differentiate between income derived from legal sources and income derived from illegal sources. Unlike typical businesses, a cannabis business faces unique state taxes, complex tax audits and limited deductions under Internal Revenue Code §280E. These challenges face cannabis producers, distributors and sellers as well as ancillary providers such as property owners, equipment providers, investors and insurers.

How can we help?

  • Cannabis Applications
  • Regulatory Compliance
  • Investment Transactions & Contracts
  • Business Law
  • Tax Planning & Representation
  • Tax Litigation & Criminal Tax Defense
  • Entity Structuring & Inter-company Agreements
  • Accounting Systems & Record-keeping
  • Cash Management Support Services

Get compliant. Stay in business.

We follow the trends and new developments impacting the cannabis industry and defend our clients from legal action, investigations and examinations by government authorities so we know what to advise our clients to minimize their risk and exposure.

Being proactive with effective tax planning and proper operating procedures is the best way to avoid mistakes that could result in higher taxes, exorbitant fines and penalties, suspension of your license – or even your freedom.

Local connection. Comprehensive cannabis focused expertise.

From our firm’s headquarters in Irvine, California with offices in Southern and Northern California we can help you deal with local, state and federal authorities regarding legal structure and transactions, tax compliance and planning, accounting systems and cash management to minimize your taxes and conduct business in a manner that avoids prosecution by the Federal authorities and meets State & Local laws and regulations to ensure your cannabis business remains operational. Let us provide you with creative and cost-effective legal counsel to cannabis businesses and develop compliance solutions and effective legal defense.  Protect your business and livelihood, and minimize your taxes. Don’t delay call us today!

Cannabis / Marijuana Tax News

Nationwide Block On The Corporate Transparency Act Remains In Place

Requirement For Banks & Financial Institutions To Report Beneficial Ownership Information Of Entity Accountholders Put On Hold The Federal government in its efforts to crack down on illicit finance and enhance transparency on September 29, 2022 issued a final ruling establishing a beneficial ownership information reporting requirement, pursuant to the Corporate Transparency Act (CTA). This rule will require most […]

President Biden Signs Into Law Expanded Federal Disaster Tax Relief

On December 12, 2024 President Joe Biden signed H.R. 5863, the “Federal Disaster Tax Relief Act of 2023” which will designate a series of presidentially declared disasters as qualified disaster events.  What this means – if you were impacted by recent hurricanes, you can now claim disaster-related losses more easily—whether you itemize your taxes or […]

New Rights For California Freelancers – What You Need To Know About The Freelance Worker Protection Act

On September 28, 2024 California Governor Gavin Newsom signed Senate Bill 988, the Freelance Worker Protection Act. Senate Bill (SB) 988 provides basic labor protections for freelance workers, such as the right to be paid on time and in full. Most freelancers lack basic worker protections, most notably, the right to be paid for their […]

Cannabis Rescheduling Hearing to Run Through March 2025

Cannabis Rescheduling Hearing to Run Through March 2025 The prime benefits of reclassifying cannabis from a Schedule 1 substance to a Schedule 3 substance is that the Federal government would recognize medical benefits of cannabis, make Section 280E inapplicable to licensed cannabis operators, and open up financial and banking markets. On August 26, 2024 the […]

Corporate Transparency Act Blocked Nationwide by Texas Court

Requirement For Banks & Financial Institutions To Report Beneficial Ownership Information Of Entity Accountholders Put On Hold The Federal government in its efforts to crack down on illicit finance and enhance transparency on September 29, 2022 issued a final ruling establishing a beneficial ownership information reporting requirement, pursuant to the Corporate Transparency Act (CTA). This rule will require most […]

Under A Second Trump Term, How Will The U.S. Attorneys’ Office Support Or Hinder The Cannabis Industry?

Under A Second Trump Term, How Will The U.S. Attorneys’ Office Support Or Hinder The Cannabis Industry? During President Trump’s 2016 campaign, he supported medical marijuana and deferred recreational use decisions to individual states. However, his first administration took a stringent approach, with then Attorney General Jeff Sessions rescinding Obama-era guidelines that limited federal interference […]

Under A Second Trump Term, How Will The U.S. Attorneys’ Office Support Or Hinder The Cannabis Industry?

Under A Second Trump Term, How Will The U.S. Attorneys’ Office Support Or Hinder The Cannabis Industry? During President Trump’s 2016 campaign, he supported medical marijuana and deferred recreational use decisions to individual states. However, his first administration took a stringent approach, with then Attorney General Jeff Sessions rescinding Obama-era guidelines that limited federal interference […]

San Francisco Voters Approve A Significant Overhaul To The City’s Business Tax Regime

On November 5, 2024 voters in San Francisco approved Proposition M (“Prop. M”) which aims to exempt more small businesses from taxes and fees, while reducing taxes on some of the city’s largest companies. Currently, San Francisco taxes businesses operating in the city based on the number of employees working in San Francisco.  Such method […]

How Will The Second Trump Administration Handle Cannabis?

How Will The Second Trump Administration Handle Cannabis? During President Trump’s 2016 campaign, he supported medical marijuana and deferred recreational use decisions to individual states. However, his first administration took a stringent approach, with then Attorney General Jeff Sessions rescinding Obama-era guidelines that limited federal interference in state-legal cannabis activities. The Growing Trend In Legalizing […]

How Did Cannabis Fare In The November 2024 Elections?

How Did Cannabis Fare In The November 2024 Elections? The November 2024 Elections gave voters in 4 states—Florida, Nebraska, North Dakota, and South Dakota the opportunity to decide on whether they want to legalize recreational or medical/adult-use marijuana. Here are the results …. Florida – FAILED FOR RECREATIONAL/ADULT USE.  Although 55.9% voted for such constitutional […]
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