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

District Court Reinstates Corporate Transparency Act Enforcement

Requirement For Banks & Financial Institutions To Report Beneficial Ownership Information Of Entity Accountholders Back In Force. 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 […]

Can You Go To Jail For Not Filing Tax Returns? Beware this can happen to you.

A man who did not file tax returns for 4 years in a row pleaded guilty before a Federal District Court Judge to evading his income taxes and now must serve 8 months in jail. As reported on October 24, 2024 by the Department Of Justice in a press release, from 2018 through 2021 John […]

Now That Pam Bondi Is Serving As Attorney General In Trump’s Second 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 in state-legal cannabis activities. The Growing Trend In Legalizing Cannabis – Current Standings: Medical marijuana is legal […]

Six Common Myths About The Dreaded IRS Tax Audit

Filing taxes is punishment enough without the vague threat of an IRS audit looming over our heads. For understandable reasons, the IRS insists on keeping the ins and outs of its auditing process on the murky side. How will you catch the bad guys if you give them the rule book first?   But because of […]

Supreme Court Allows Corporate Transparency Act Enforcement

Requirement For Banks & Financial Institutions To Report Beneficial Ownership Information Of Entity Accountholders Back In Force By The Highest Court. 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 […]

Jews Granted Minority Status By U.S. Department Of Commerce, Opening Access To Billions In Benefits

In a landmark agreement, the U.S. Department of Commerce during the Biden administration announced it has officially recognized Jewish-owned businesses as Minority Business Enterprises (“MBE”). This designation, formalized through a memorandum of understanding (“MOU”) between the Orthodox Jewish Chamber of Commerce and the Minority Business Development Agency (“MBDA”), enables Jewish entrepreneurs to access a plethora of federal […]

Former DEA Official Derek Maltz: Trump’s nominee to lead the DEA. What Could This Mean To The Future Of Cannabis Rescheduling?

On January 20, 2025 President Trump named Derek Maltz to take over as DEA administrator on an interim basis.  Since his previous retirement from the DEA, Maltz was working as head of government relations for a software company.   Maltz, whose 28-year DEA career included 10 years as special agent in charge of the agency’s Special […]

Former Missouri Congressman and Auctioneer – Billy Long: Trump’s nominee to lead IRS. What Could This Mean To The Future Of IRS Tax Enforcement?

Danny Werfel who was sworn in as the 50th IRS Commissioner on April 4, 2023 announced his resignation effective January 20, 2025 even though his current 4-year term does not expire until 2027.  Donald Trump who will be inaugurated as President on January 20, 2025 has named his nominee, former U.S. Representative Billy Long of […]

Cannabis Rescheduling Hearing Indefinitely Stayed

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 Drug Enforcement Administration (“DEA”) released its notice scheduling […]

California Wildfire Victims Qualify For IRS Tax Relief

On January 10, 2025 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in southern California affected by wildfires and straight-line winds that began on January 7, 2025. These taxpayers now have until October 15, 2025, to file various federal individual and business tax returns and make tax payments. The California Department Of Tax And […]
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