Guide gives cannabis operators a head-start in preparing for the anticipated increase in tax audits for the industry
LOS ANGELES, Sept. 14, 2022 /PRNewswire-PRWeb/ -- MGO (Macias Gini and O'Connell LLP) has released the "Cannabis IRS Tax Audit Survival Guide." This guide is free to download and contains over 15 pages of detailed financial and accounting best practices designed to help cannabis operators limit tax issues and navigate the IRS audit process.
"We are seeing early signs of a perfect storm where the ambiguity of cannabis tax laws, increased funding for the IRS, and rising operator revenues – and subsequent tax bills – make the stakes of a cannabis audit higher than ever," said Barbara Webb, MGO Cannabis Tax Practice Leader. "This guide is designed to help cannabis operators establish solid business practices that limit risk and show the IRS they are acting in good faith."
The "Cannabis IRS Tax Audit Survival Guide" provides step-by-step instructions for every stage of a federal tax audit. Sections include discussions about appropriate record-keeping and ways to prepare for an audit, how to compile appropriate documentation and collaborate with the IRS (without over-sharing), and your best options for navigating the appeals process or taking your case to US Tax Court.
"While thinking about an audit might feel like preparing for a worst-case-scenario, the good news is that the steps we recommend for clients – and detail in this guide – are also best practices for any cannabis operation," said Nolan Shutler, Director of MGO State and Local Tax practice. "Activities like utilizing proper documentation and accounting methods also deliver tangible benefits to managing your operation, so even if you never get audited, you're still making your business stronger."
To paint a complete picture of tax audit preparation and management, the "Cannabis IRS Tax Audit Guide" includes guidance by leaders from different disciplines in MGO's Tax Practice. The guide is co-authored by Barbara Webb, Cannabis Tax Practice Leader, T. Renee Parker, Tax Controversy Practice Leader, and Nolan Shutler, SALT Director.
To provide additional perspective, the "Cannabis IRS Tax Audit Survival Guide" also includes insights from experienced cannabis tax lawyer Nick Richards, Partner and Co-Chair of the Cannabis Law Group at GreenspoonerMarder LLP.
The "Cannabis IRS Tax Audit Survival Guide" is available for free download at MGO's website.
About MGO
As one of the fastest-growing business advisory and CPA professional services firms in the country, MGO combines deep industry experience with well-established advisory and accounting solutions that deliver results. MGO clients range from global technology and life science leaders to public companies and innovative startups – from the largest government entities in the country, to the biggest names in sports and entertainment. MGO is ranked as one of the top CPA firms in the nation by Accounting Today and Inside Public Accounting.
Media Contact
Tim Wells, MGO LLP, 916-642-7126, [email protected]
SOURCE MGO LLP
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