Accounting, Auditing, and Tax Considerations for the Cannabis Industry (Virtual) (CAN4-VIR)

4.00 CPE Credit Hours

States have been passing legislation that legalizes cannabis for medicinal and recreational use, and the producers and retailers in this industry have been growing. Accounting and financial professionals are now tasked with navigating the often contrary state and federal laws. With cannabis being classified as a Schedule 1 controlled substance under the Federal Controlled Substances Act of 1970 and subject to federal prosecution, can CPAs offer services to clients that operate in this industry? If the CPA does offer services, what are the major tax issues (federal and state) that impact this industry? This course will answer these questions as well as provide the guidance that accounting professionals need to know to offer services in the cannabis industry.

Designed For
Any accounting or financial professional that works directly or indirectly in the cannabis industry or is interested in learning more about how this recent state legislation is impacting the accounting profession.

Objective

Participants will be able to:

• Define the risks of taking on a client in the cannabis industry
• Recognize state reporting rules for a cannabis business
• Recognize federal reporting rules for a cannabis business
• Properly account for a cannabis business
• Identify and implement appropriate internal controls for a cannabis business
• Differentiate federal income tax issues between ordinary business and a cannabis business
• Use knowledge of IRC Section 280E to determine what deductions are not allowed for a cannabis business

Highlights

• Types of cannabis-related businesses
• Risk considerations for services offered in the cannabis industry
• Recognizing what costs are and are not considered cost of sales under IRC Section 280E
• Recognize if the entity conducts a business separate from the cannabis sales that may allow some deductions aside from cost of sales
• State and federal tax differences
• Cash-based business audit considerations
• Financial reporting considerations

Prerequisites
Basic auditing, accounting and tax experience.

Advanced Preparation
None

Developer
Kaplan Loscalzo

Presenters
Ed Zollars,

Level of Knowledge
Beginning