Ricardo Baca interviewed attorney James Thorburn of Thorburn Walker LLC on The Cannabist Show recently. Thorburn explained a recent jump in the number of IRS audits of cannabis business operators as related to how companies, typically cultivators or processors, are handling the reporting of cash, though he suggests anecdotally that even ancillary companies are facing issues.
The IRS is being more aggressive. Any business that is handling product is probably going to be subject to an audit. It’s not a question of if at this time, it’s a question of when.
Form 8300, which is designed to track money-laundering, must be filed for any cash transaction in excess of $10,000, and Thorburn believes that the wholesale cannabis industry has generally failed to properly report these transactions due to a lack of awareness of the requirement.
Listen to the interview or read “Worst-case scenario: Why more pot businesses are suddenly getting audited by the IRS”: http://www.thecannabist.co/2016/10/13/irs-marijuana-industry/63758/
Are you a cannabis industry thought leader and want to be heard? Let us know your story.