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

Excessive FBAR Penalties stopped by the 11th U.S. Circuit Court

Historic ruling that can impact challenging large penalties in the future. In recent years the IRS has made the Report of Foreign Bank and Financial Accounts (FBAR) penalty enforcement a top priority and this is alarming the taxpayers worldwide. Even during every routine domestic IRS audit, IRS agents are looking for undisclosed foreign bank accounts. […]

IRS provides expanded tax relief for Hurricane Helene and Hurricane Milton victims.

On October 11, 2024 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses affected by Hurricane Milton, including the entire states of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia. These taxpayers now have until May 1, 2025, to file various federal individual and business tax returns and […]

California Welcoming Cannabis Cafés

California Welcoming Cannabis Cafés Governor Gavin Newsom has signed into law the cannabis café bill (AB 1775), to allow licensed cannabis lounges to sell non-alcoholic food and drinks, as well as tickets to onsite concerts, with local government approval. “Lots of people want to enjoy legal cannabis in the company of others,” said AB 1775’s […]

IRS provides relief to July 2024 storm victims in Illinois.

On October 1, 2024 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in parts of Illinois affected by severe storms, tornadoes, straight-line winds and flooding that began on July 13, 2024. These taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax […]

IRS provides relief to victims of Tropical Storm Debby in Pennsylvania.

On September 18, 2024 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in Pennsylvania affected by Tropical Storm Debby. These taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments. The tax relief postpones various tax filing and payment deadlines that occurred from […]

IRS provides relief to victims of Tropical Storm Francine in Louisiana.

On September 13, 2024 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in Louisiana affected by Tropical Storm Francine that began on September 10, 2024. These taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments. The tax relief postpones various tax filing […]

IRS provides relief to victims of severe storms and flooding in Connecticut and New York.

On September 10, 2024 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in Connecticut and New York affected by severe storms and flooding from torrential rainfalls that began on August 18, 2024. These taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments. […]

IRS tax relief now available to U.S. Virgin Islands victims of Tropical Storm Ernesto.

On August 28, 2024 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in the U.S. Virgin Islands affected Tropical Storm Ernesto that began on August 13, 2024. These taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments. The tax relief postpones various […]

DEA Sets Hearing On Cannabis Rescheduling Thus Delaying Its Decision Until After The Election

DEA Sets Hearing On Cannabis Rescheduling Thus Delaying Its Decision Until After The Election 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 […]

Did You Receive Funds From The Employee Retention Credit Program That You Were Not Eligible To Receive? Here are the five new red flags that IRS is looking for.

IRS opens second Employee Retention Credit Voluntary Disclosure Program sending up to 30,000 letters to address more than $1 billion in errant claims Thousands of new recapture letters going out for improper ERC claims made for Tax Year 2021, some Tax Year 2020. As part of ongoing compliance work, the IRS announced on August 15, […]
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