The Internal Revenue Service (IRS) on Wednesday hosted a forum dedicated to tax policy for marijuana businesses and cryptocurrency. The seminar, which was presented by a representative of the National Association of Tax Professionals (NATP), examined issues such as allowable tax deductions while cannabis remains federally illegal and how different states approach taxing marijuana. It also covered issues related to paying taxes on earnings in Bitcoin and other forms of digital currency. During the IRS Nationwide Tax Forum panel, there was also a discussion about the growing public support for cannabis legalization and the prospects of federal reform. A description of the event states that attendees would learn how to “prepare a tax return for illegal activities” and “identify when virtual currency needs to be reported as taxable income.” The presentation, which was aimed at tax professionals interested in learning about the crypto and cannabis spaces, provided a high-level overview of some of the financial issues that are unique to the marijuana industry under the umbrella of federal prohibition. While the vast majority of states have legalized cannabis in some form, its illicit status under the Controlled Substances Act means that marijuana businesses can not deduct standard expenses like in other traditional markets under a provision known as 280E, the presenter explained.
Kyle Jaeger, Marijuana Moment, 08/18/2021 16:53:00