Your CPA Called: Here’s What The IRS Should Know About Cannabis Businesses
With tax season approaching, CPAs are calling on the IRS to prepare for potential changes impacting cannabis businesses. The American Institute of CPAs (AICPA) recently submitted recommendations to the U.S. Treasury and IRS, highlighting areas where guidance is needed to clarify tax obligations for cannabis operators if marijuana is reclassified as a Schedule III substance.
In May, the Department of Health and Human Services recommended moving marijuana from Schedule I to Schedule III, a change that would reduce its federal restrictions and potentially allow cannabis businesses to deduct operating expenses, currently restricted under Section 280E.
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