Trends in tax crimes

Posted Leave a commentPosted in Cannabis, IRS, New Jersey, Taxes

I missed a continuing professional education program on IRS criminal tax procedures yesterday due to ongoing problems restoring utilities after the storm on Tuesday. But I just read the program materials and the IRS 2019 report on criminal tax investigations and one thing jumps out at me: Drug related cases far outweigh all other categories […]

September progress

Posted Leave a commentPosted in Accounting, Cannabis, Marijuana related business (MRB), Marketing, Nonprofit, Small Business

This month of September 2019 was one of the most productive I’ve had in decades of small business. I helped launch (or re-launch) five new businesses. Three of them are nonprofits. One is already a financially “profitable” nonprofit so the tax and social benefit impact is impressive. I’ve proven that by offering free assistance to […]

Accounting considerations for handling cash

Posted Leave a commentPosted in Accounting, Banking, Cannabis, Farming

Some of my primary client groups depend heavily on cash transactions. The seafood and farming industries in rural southwest New Jersey, for example, are almost entirely run on cash. There isn’t a bank branch in our rural township; the closest bank is a 20-30 minute drive each way. Also, parts of our are do not […]

Update on nondisclosure of charities’ donor rule

Posted Leave a commentPosted in Cannabis, Nonprofit, Tax Planning

Revenue Procedure 2018-38 remains controversial. Lawmakers (mostly Democrats) are concerned that it could encourage the flow of dark money into the tax-exempt sector. Their concern is valid. I know of private foundations that have already reorganized as public charities to take advantage of the secrecy rule change for their own benefit. No doubt, this rule […]

Banking is difficult – not impossible – for marijuana related businesses

Posted Leave a commentPosted in Banking, Cannabis, Marijuana related business (MRB)

I often hear comments that you can’t get a bank account or credit card processing for a marijuana related business (MRB). That is just not true. Peer CPAs on the west coast have reported success in building baking relationships for their clients and we are sure that this trend will expand eastward. What is true […]

Avoid being a fraud victim when venturing into the cannabis industry

Posted Leave a commentPosted in Accounting, Cannabis

It seems like every week lately we read about another cannabis industry fraud. Investors are losing millions. Regulators are levying fines. The IRS, tax court and states are moving at full speed against these companies that simply lack effective management controls. In one tragic case, a cannabis business founder committed suicide after losing millions in […]

Two tips for new nonprofit organizations

Posted Leave a commentPosted in Accounting, Cannabis, Nonprofit

There are more than a million nonprofit businesses in the U.S. with more every day. State requirements that new cannabis companies be in nonprofit form bring more attention. Yet most nonprofit organizations are small volunteer-driven businesses with small budgets. They still need to make smart business management decisions, beginning with the business start-up. Starting out […]