IRS Releases Tax Guidance For Marijuana Industry

IRS Releases Tax Guidance For Marijuana Industry

The Internal Revenue Service (IRS) on Thursday released updated guidance on tax policy for the marijuana industry, including instructions on how cannabis businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash. Because marijuana remains federally illegal, the industry is largely deprived of tax benefits extended to operators in other markets—but it still has an obligation to pay taxes and properly report transactions, IRS said. “A key component in promoting the highest degree of voluntary compliance on the part of taxpayers is helping them understand and meet their tax responsibilities while also enforcing the law with integrity and fairness to all,” the new memo states. “Businesses that traffic marijuana in contravention of federal or state law are subject to the limitations” in IRS code. Income from any source is taxable, and taxpayers are generally required to file a tax return to report that income. #IRS provides general guidance for taxpayers in the marijuana industry: https://t.co/POESTOvT7H pic.twitter.com/f4y1Q3KlIn — IRS #COVIDreliefIRS (@IRSnews) September 11, 2020 This update appears to be responsive to a Treasury Department internal watchdog report that was released in April. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.” The new guidance briefly covers the rules for income reporting, cash payment options, estimating tax payments and keeping financial records.…

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Source : MJ moment
Link to original : IRS Releases Tax Guidance For Marijuana Industry
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