Image by CRYSTALWEED cannabis

Cannabis Compliance Audit

   One of the most important precautions every cannabis business and cannabis business plan should have performed quarterly, is a cannabis compliance audit. Considering we are at the very beginning of the cannabis industry, every cannabis business with a long term outlook must consider how they can stay compliant with the constantly changing laws and regulations.  

   From a report by the U.S. Treasury Inspector General for Tax Administration dated March 30th 2020, he concluded from his audit of cannabis companies that approximately 59% of cannabis businesses have a high rate of non-compliance with IRC 280e. In the report, the U.S. Treasury Inspector requested additional guidance in regards to IRC 280e from the IRS, which the IRS provided little to no guidance.

   On top of the data found by the U.S. Treasury Inspector, the Biden administration proposes to double the IRS workforce and increase the IRS budget to $80 billion dollars to increase audits to enforce tax evasion. 

 

   Knowing this information should confirm that your cannabis business requires internal cannabis compliance audits performed regularly.

Why is it important?

   Strict regulations by the State and Federal Government increase your odds of getting audited by the IRS by over 400%.   

   Receiving a non-compliance notice can cost you heavily and possibly lose your cannabis license. At CashGrows CPAs, we make sure you are in compliance with Local, State and Federal regulation.

   Everyday more and more cannabis companies are beginning to lose their cannabis business license for non-compliance. In some states the cannabis market is oversaturated. Local authorities analyze the supply and demand of cannabis businesses and if they determine the market is oversaturated, you can bet that your local authority will be stricter and have harsher consequences for non-compliant cannabis businesses.

Our Solution

  As certified accountants our training and expansive financial knowledge in the cannabis industry allows us to ensure that all your financial decisions are made carefully with your best interests in mind.

   During our cannabis compliance audit, we will analyze your business based on the type of cannabis license you posses. Whether you are a cannabis dispensary, manufacturing facility, cultivation facility, transport, and testing facility, we have the right solution to ensure your business stays in compliance.

Speak With an Advisor Today

We are here to help you make the best decisions for your cannabis business

How can we help?

Financial Advisor