IRS Memo Addresses Limits to Deductions for Marijuana Businesses

On January 23, the IRS released Chief Counsel Memorandum 201504011, which sheds light on how taxpayers trafficking in controlled substances, such as marijuana, determine costs of goods sold (also known as “COGS”), and if the IRS can require taxpayers trafficking in controlled substances to change their method of accounting for costs if the taxpayer currently […]

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Circular 230

IRS Guidance for Practitioners Working With Marijuana Retailers

The IRS Office of Professional Responsibility plans to release guidance in the first quarter of 2015 for practitioners working with marijuana retailers (whether medical or recreational) in states where the sale of marijuana is legal. Practitioners are concerned that preparing returns for marijuana growers and retailers could lead to legal trouble, and will be considered […]

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