Marijuana businesses still face federal income tax compliance woes. Though 18 states allow cannabis for recreational use and 37 states allow it for medical use, the National Taxpayer Advocate Erin Collins recently issued a warning for those in the cannabis industry. Businesses that produce, distribute or sell cannabis “should be aware that there are significant federal income tax challenges and understand the federal tax consequences.” Regardless of state law, federal law still considers marijuana a controlled substance and participating in the industry is deemed drug trafficking. Contact us with questions, or click here for a list of FAQs for marijuana businesses: https://bit.ly/39IfBSA
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