home grown cannabis
tax compliance services
The dirt
Tax issues surrounding cannabis are complicated and are subject to constant change. The IRS has only ever made one statement on the cannabis industry; besides this, we have to piece together acceptable tax strategies through tax court rulings. With no prior guidance to rely and no public accounting industry leader willing to tackle the industry, there is genuine confusion among cannabis accountants about how to file a tax return correctly. Secondly, with the combination of the 280e designation on the federal return and high state and local tax, tax liability can eat through a hefty profit very quickly. Unlike in many other industries, filing tax returns correctly could potentially make or break your business model in the short term. Third is the unique business climate under which many cannabis clients currently operate on. This includes shoddy records, informal business deals and lack of internal controls. These types of issues can lead to an especially long, painful and ultimately costly audits with federal or state authorities.
+ Federal Tax Preparation
Dealing with the dreaded IRS is no picnic. Federal tax code for businesses is complicated enough as is and gets doubly so when your organization is involved in a Schedule 1 substance. Nevertheless, filing a federal return correctly as a cannabis company is possible - it just takes a little more patience and a lot of industry knowledge. Working with our team at Greenbooks, your CPAs will be exclusively focused on the cannabis industry so you'll be able to utilize our extensive tax knowledge to your full advantage.
+ State & Local Tax Preparation
Marijuana sales in legal cannabis states are booming and the states/local municipalities want their taste. Filing these taxes correctly is crucial to any cannabis organization as proper state compliance is likely a key to keeping your license. There are many complexities to state and local taxes such as sales tax rates, excise tax, harvesting tax, retail versus commercial sales etc. Let the industry expert CPAs help you apply the code for your business case correctly.
+ Prior Period Reviews (Federal/State/Local)
If you have filed a return in previous periods and are uncertain of the accuracy of the return, we are happy to take a look with you. Companies typically ask for a prior period review if they've had a change in accounting staff, are looking to secure either debt or equity funding or . Whatever your individual case, Greenbooks will evaluate the tax returns against your financial records and validate that the tax code was applied appropriately. If we believe there was a material error in the filing, we would recommend filing an amended return so as to avoid future issues with that tax year.
+ Why Choose Green Books
Working with Greenbooks means that you will have a CPA firm at your side entirely dedicated to cannabis. We stay painstakingly up to date on the latest tax laws surrounding cannabis, hemp, CBD and THC. Being exclusively focused on the cannabis industry gives our client's an edge that many accounting firms simply can't offer. By partnering with us, you are choosing to make the very complicated regulatory framework of cannabis just a little bit easier.
Specific cannabis tax compliance services we offer:
Take a look:
Tax liability is a killer in our industry - no doubt about that. The below viz shows a very basic summary of what we might provide a client after completing a filing for them, breaking out federal income tax, state sales tax, excise tax, etc.
