As we find that medical and recreational cannabis use is on the rise, practitioners who seek to service clients in this marketplace must be fully aware of the accounting and tax rules that impact this highly regulated industry. This course will provide participants with an overview of legislative and regulatory pronouncements for the industry as a whole. We'll then tackle accounting and internal control considerations that operators must routinely address. Last, we'll look at federal tax law limitations imposed on cannabis operators along with various taxing regimes for states which have legalized sales.

After completing this course, you will be able to:

• recall legislative initiatives designed to ease restrictions imposed on the cannabis industry
• identify federal laws and pronouncements that impact the accounting and tax treatments of cannabis growers, wholesalers, and retailers
• recall why operators in the cannabis industry must pay specific attention to properly categorizing inventory and cost of goods sold
• identify which internal control challenges small entities face when selling marijuana
• identify critical Internal Revenue Code Sections that practitioners must be mindful of when servicing clients in the cannabis industry
• recall non-deductible expenses attributable to cannabis entities resulting from federal law
• identify various forms of state taxes imposed on cannabis related transactions
• recall various forms of taxation and revenue by states which have legalized the sale of cannabis

Tax Year: 2022