The IRS, in the final week of a forum to discuss tax policies with preparers and professionals, included a seminar presented by a representative of the National Association of Tax Professionals (NATP) that looked at issues like what tax deductions are allowable and how states regulate marijuana differently, and the concept of paying taxes in Bitcoin or other alternative currencies in the future.
The event, which began the week of July 20, has included basic discussions around topics like steering clear of frauds and scams, what to expect during a tax audit, how to file tax returns “for illegal activities,” and how tax laws change from a forms perspective.
But Wednesday’s discussions in the forum included how cannabis is now legal in many states, that a bill now in Congress led by Democratic Sen. Chuck Schumer might legalize it on a federal level and the prospects for its future from a tax perspective.
One topic covered was based around the provision of the Controlled Substances Act known as Section 280E, which says that cannabis businesses cannot deduct expenses like other legal businesses.
As the presenter explained, even though marijuana is illegal on a federal level, the IRS still considers it taxable income. He also suggested checking the new IRS website for more information on how small marijuana businesses will deal with taxes in the future, including using alternative currencies. See that section here.
“There are thousands of people who are trying to jump into the marijuana business right now,” the IRS official said about the forum. “And as you become legalized throughout the country, we wanted to educate individuals.”
This piece was originally published by Marijuana Moment and has been edited or modified by The News Station.