IRS 280E Expert Cannabis Accounting

Are you looking for ways to minimize your cannabis company’s 280E tax liability? We can help!

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The IRS 208E Tax Law Is Complicated

There is no doubt that cannabis laws in the United States are complicated at best and since the federal government still classifies it as a Schedule, I drug, means the marijuana business is not only challenging, but accounting and tax law is confusing.

One of the more complicated challenges is the 280E tax code which is an IRS code that states, section 280E of the Internal Revenue Code that states businesses that sell cannabis—be it for medical or recreational purposes—are forbidden from recording tax deductions and credits due to its Schedule I classification.

So, even though an increasing number of states have made the sale of medical and recreational marijuana legal, tax code 280E continues to heavily impact the finances of cannabis businesses because, at present, they can only deduct taxes for the cost of goods sold; nothing else.

Hire A Knowledgeable Cannabis Accounting Professional

Of course, there are ways to maximize your canna-business tax liabilities and we can help. When hiring a cannabis accountant, it’s important to make sure you hire someone like us who is familiar with the once obscure 280E tax code so we can give you the best options to minimize your risks and costs.

We Help You Keep Extremely Detailed Records

You want to be able to claim Costs of Goods Sold (COGS) where available. If your business is audited and you don’t have comprehensive records about every individual transaction, you risk forfeiting your COGS claim, and you’ll have to pay a steep 20% fee for signing an inaccurate tax return. And trust us the IRS loves to get paid.

Turn to our experienced cannabis accountant firm for:

 

  • Accounts Receivable
  • Accounts Payable
  • Financial Statements
  • Account Reconciliations
  • General Ledger
  • Sales Tax Returns
  • Non-Profit Accounting
  • Inventory Setup
  • Cost of Goods Sold Tracking
  • Historical Data Entry
  • Remote Services
  • QuickBooks Setup and Training
  • Accounting Review and Clean-Up
  • Payroll and Human Resources

We Can Help Your Business Today!

Give Us A Call at 1-602-245-0490 or Click The Free Quote Button

What Our Happy Clients Say About Us

Don’t take our word for it. See what some of our clients have to say about our accounting services and how we’ve helped their businesses and relieved their stress.

“Sharon is really great. She helped me pull together all of my business expenses in prep for our CPA review. She is very hardworking, and very reasonable in cost. She makes herself available 7/24 (honestly) I called her on the weekends and early in the am and late at night. It’s a big stress relief to know someone like Sharon is on my side with all her support!” Kelly S

Small Business Owner, Scottsdale, AZ

We were 2 years behind and getting audited in 3 months. Sharon came in rebuilt the data base and started working on our books. Our first quote was from CPA 4 months and 40k Sharon (one person) did it in 8 weeks and 12k working 60 hours a week (even through Thanksgiving day). She did something that a CPA said it could not be done with one person. Sharon set up all 3 companies accounting in QuickBooks, payables, deposits, payroll, banking, receivables, and all reconciliations. She had a clean P&L and Balance sheet by the time she was finished. I would highly recommend her she is very strong using QuickBooks. Ray Allen

Manager, Auto Title Loans USA

“I needed help with Quick Books for our restaurant business, and Sharon was the perfect fit. She has helped me set up and understand how everything works. She is very knowledgeable in Quick Books, but if she doesn’t know something she will research it to get you an answer. She is available at all times and is always quick to respond to my email, texts, and phone calls. Thank you Sharon for making Quick Books easy and less frustrating for me.” Jill M.

Restaurant Owner, Chandler, AZ

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