Leech Tishman: Legal Services
Menu
  • Firm
    • About Us
    • Management
    • Careers
  • People
  • Capabilities
    • Practice Group
      • Business Restructuring & Insolvency
      • Construction
      • Corporate
      • Employment & Labor
      • Estates & Trusts
      • Intellectual Property
      • Litigation & Alternative Dispute Resolution
      • Real Estate
        • Leech Tishman Closings
    • Industries
      • Aviation & Aerospace
      • Cannabis
      • Emerging Cyber Technologies
      • Energy & Natural Resources
      • Healthcare
      • Hospitality
      • Life Sciences
  • COVID-19
    • Pandemic Relief Programs
  • Insights
    • All
    • Client Alerts
    • Firm News
    • Press
    • Podcasts
      • Cannabis LawTalk
      • Data Privacy LawTalk
    • Events
    • Resource Center
  • Locations
  • Payment
  • Contact

Connect

  • Facebook
  • Twitter
  • LinkedIn
Leech Tishman: Legal Services
  • Firm
    • About Us
    • Management
    • Careers
  • People
  • Capabilities
    • Practice Group
      • Business Restructuring & Insolvency
      • Construction
      • Corporate
      • Employment & Labor
      • Estates & Trusts
      • Intellectual Property
      • Litigation & Alternative Dispute Resolution
      • Real Estate
        • Leech Tishman Closings
    • Industries
      • Aviation & Aerospace
      • Cannabis
      • Emerging Cyber Technologies
      • Energy & Natural Resources
      • Healthcare
      • Hospitality
      • Life Sciences
  • COVID-19
    • Pandemic Relief Programs
  • Insights
    • All
    • Client Alerts
    • Firm News
    • Press
    • Podcasts
      • Cannabis LawTalk
      • Data Privacy LawTalk
    • Events
    • Resource Center
  • Locations
  • Payment
  • Contact
  • Search

10 Tips to Help Your Marijuana Business Survive an IRS Audit

Posted on June 21, 2021

By: Michael H. Sampson and Alexander J. Gase

Click on the button below to print this infographic. This infographic is optimized to print on Letter (8.5 x 11″) size paper.

Download Infographic

  1. Understand Applicable Law, including Section 280E of the Internal Revenue Code.
  2. Review Business Expenses to ensure correct characterization of costs that might qualify as “cost of goods sold” under Section 471(a) of the Internal Revenue Code.
  3. Maintain All Tax-Related Documentation, including tax returns, receipts, and correspondence with tax authorities, for an extended period.
  4. Retain And Organize Documentation regarding company owners’ personal living expenses and net worth, as the IRS has identified this information as potentially relevant to determining business sales.
  5. Carefully Follow U.S. Tax Court Cases and other federal court rulings, U.S. Department of Treasury guidance and IRS bulletins and publications.
  6. Utilize IRS Prepaid Credit Cards to pay estimated taxes online.
  7. Cooperate With IRS Agents (if and when required/appropriate), and work with legal counsel to protect all legal rights.
  8. Be Prepared For On-Site Tours of business and initial interviews, which are common methods employed in audits across this industry.
  9. Ensure All Correspondence With The IRS Is In Writing to establish a “paper trail.”
  10. Contact An Experienced Tax Attorney, preferably one with knowledge of the cannabis industry, and/or a qualified accountant, if and when the business has been identified for audit.

Michael H. Sampson is a Partner with Leech Tishman and co-leads the Cannabis Industry Group. He can be reached at msampson@leechtishman.com or 412.261.1600.
Alexander J. Gase is an Associate with Leech Tishman and a member of the Cannabis Industry Group. He can be reached at agase@leechtishman.com or 412.261.1600.

The contents of this graphic were originally published as an article in Marijuana Business Daily on May 19, 2021. These materials are for informational purposes only and are not intended to and do not constitute legal advice or a solicitation for the formation of an attorney-client relationship.

Share on:

Insights

  • All
  • Client Alerts
  • Firm News
  • Press
  • Events

Categories

  • Bankruptcy Insights
  • Employment Blog
  • LaunchPad Blog

Archives

Connect

  • Facebook
  • Twitter
  • LinkedIn

Locations

  • Pittsburgh, PA
  • Chicago, IL
  • Los Angeles, CA
  • New York, NY
  • Philadelphia, PA
  • Sarasota, FL
  • WASHINGTON, D.C.

© 2022 Leech Tishman Fuscaldo & Lampl LLC. View our Terms of Use and Privacy Policy

Site by Imagebox