Taxes can cause major headaches for ill-prepared cannabis businesses thanks to the stringent intricacies and requirements of Internal Revenue Code 280E. In a recent article for Cannabis Industry Journal, Rebel Rock CFO and Co-founder Melissa Diaz shares a handful of steps for plant-touching businesses to follow when preparing for tax season.
In her article, Melissa stresses the importance of working with a tax professional to help guide businesses through the entire tax prep process. Not every accountant understands IRC 280E, which makes it vitally important to not only work with a tax pro, but someone with experience in cannabis. Companies must be sure to completely close out their books and collect all pertinent records to justify the numbers in their tax filings. Doing both goes a long way toward maximizing deductions, limiting delays and potential penalties, and defending the business in the event of an audit by the IRS.
Tax preparation for cannabis businesses can be complex. But we can help. The professionals at Rebel Rock are intimately familiar with the intricacies of 280E and can navigate your business through tax season and beyond. Learn more about our full slate of services including taxes.