The growth of the marijuana industry is warranting increased tax compliance efforts and additional guidance.
Just recently Forbes was reporting on a large cannabis company that went under because of poor record keeping and unscrupulous behavior by those higher up in the company. Keep in mind that the IRS is aware that over 70% of cannabis business are under reporting their taxes.
A study conducted by the Treasury Inspector General for Tax Administration in March 2020 reports such findings. The random samples found 140 out of 237 cannabis business had under reported. The amount totaled to $48.5 million in unassessed taxes for 2016. Did someone say INFRASTRUCTURE?
The IRS has not been shy on increasing audits to marijuana businesses in 2021. An issue that we at Bulldog Consulting find a lot when doing 280e assessments is all costs being thrown into the COGS and real estate percentage amounts not being correctly done.
Looking for an accountant, why not a remote CFO at the fraction of the cost of an on-site bookkeeper, accountant, CFO? If you feel your books are not up to snuff, give us a call at 833-4-CANBIZ or 833-422-6249. Get ahead of the game!