Accounting, Auditing, and Tax Considerations for the Cannabis Industry

Overview

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, but allowed to be sold in an increasing number of states, what are the major accounting and tax issues (federal and state) that impact this industry? This course will provide the basic guidance that accounting professionals need to know to offer services in the cannabis industry.

Prerequisites

Basic auditing, accounting, and tax experience

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.

Objectives

• 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
• Identify and apply various state and local tax issues that apply to the sale of cannabis

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by the California Education Foundation (CalCPA). Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.