State & Local Regulation

Regulations imposed by state agencies and local governments requires a detailed and daily compliance plan managed and maintained by experienced professionals that is backed up with diligent and accurate record keeping. Learn how we can help maintain compliance to avoid license suspension and penalties.

Banking Challenges

Many banks remain reluctant to do business with businesses in the cannabis industry and as it is with any cash-based business, the IRS scrutinizes the amount of gross receipts to report and it is harder to prove to the IRS expenses paid in cash. Learn how we can help set up the proper facilities and procedures to maintain an adequate system to overcome these challenges.

Federal Prosecution

Despite legalization by a growing number of states, the cultivation, distribution and sale of cannabis at the Federal level is an unlawful activity that could lead to criminal prosecution. Learn how we can help limit this exposure and position your business with the lowest risk possible.

Tax Challenges

Despite a growing number of States legalizing cannabis, the Internal Revenue Code still taxes cannabis businesses differently that without the proper planning could result in paying at least three times as much in taxes as a non-cannabis business. Learn how we can help reduce your taxes.

Why Use a Cannabis Tax Attorney?

The legal and tax challenges to operate a successful cannabis business are enormous – one wrong mistake may result in serious consequences.

High Stakes Cannabis Tax Planning & Defense.

The Law Offices Of Jeffrey B. Kahn, P.C. is a full service cannabis law firm representing our clients in high stakes cannabis business and tax issues.

As the legalized cannabis industry continues to develop, early entrepreneurs face uncertain federal enforcement and everchanging local and state regulations.  California along with a growing number of other states may well be a cannabis-friendly state but it still remains a Schedule 1 narcotic under Federal law. Despite the risk of criminal prosecution at the Federal level, cannabis businesses are still obligated to pay federal income tax on income because the Internal Revenue Code does not differentiate between income derived from legal sources and income derived from illegal sources. Unlike typical businesses, a cannabis business faces unique state taxes, complex tax audits and limited deductions under Internal Revenue Code §280E. These challenges face cannabis producers, distributors and sellers as well as ancillary providers such as property owners, equipment providers, investors and insurers.

How can we help?

  • Cannabis Applications
  • Regulatory Compliance
  • Investment Transactions & Contracts
  • Business Law
  • Tax Planning & Representation
  • Tax Litigation & Criminal Tax Defense
  • Entity Structuring & Inter-company Agreements
  • Accounting Systems & Record-keeping
  • Cash Management Support Services

Get compliant. Stay in business.

We follow the trends and new developments impacting the cannabis industry and defend our clients from legal action, investigations and examinations by government authorities so we know what to advise our clients to minimize their risk and exposure.

Being proactive with effective tax planning and proper operating procedures is the best way to avoid mistakes that could result in higher taxes, exorbitant fines and penalties, suspension of your license – or even your freedom.

Local connection. Comprehensive cannabis focused expertise.

From our firm’s headquarters in Irvine, California with offices in Southern and Northern California we can help you deal with local, state and federal authorities regarding legal structure and transactions, tax compliance and planning, accounting systems and cash management to minimize your taxes and conduct business in a manner that avoids prosecution by the Federal authorities and meets State & Local laws and regulations to ensure your cannabis business remains operational. Let us provide you with creative and cost-effective legal counsel to cannabis businesses and develop compliance solutions and effective legal defense.  Protect your business and livelihood, and minimize your taxes. Don’t delay call us today!

Cannabis / Marijuana Tax News

One Big Beautiful Bill Tax Act – How Can You Benefit?

Focus: Interest on Car Loans Deduction     On July 4, 2025 President Donald J. Trump signed into law H.R.1 – One Big Beautiful Bill Act (“OBBBA”).  OBBBA contains hundreds of provisions including permanently extending the individual tax rates Trump signed into law in 2017, which were originally set to expire at the end of 2025. […]

One Big Beautiful Bill Tax Act – How Can You Benefit?

Focus: Gambling Losses    On July 4, 2025 President Donald J. Trump signed into law H.R.1 – One Big Beautiful Bill Act (“OBBBA”).  OBBBA contains hundreds of provisions including permanently extending the individual tax rates Trump signed into law in 2017, which were originally set to expire at the end of 2025. The OBBBA has made […]

One Big Beautiful Bill Tax Act – How Can You Benefit?

Focus: Taxability Of Social Security Benefits and Tax Deduction For Seniors   On July 4, 2025 President Donald J. Trump signed into law H.R.1 – One Big Beautiful Bill Act (“OBBBA”).  OBBBA contains hundreds of provisions including permanently extending the individual tax rates Trump signed into law in 2017, which were originally set to expire […]

One Big Beautiful Bill Tax Act – How Can You Benefit?

Focus: Deduction For Tips and Overtime Earnings From Income Tax On July 4, 2025 President Donald J. Trump signed into law H.R.1 – One Big Beautiful Bill Act (“OBBBA”).  OBBBA contains hundreds of provisions including permanently extending the individual tax rates Trump signed into law in 2017, which were originally set to expire at the […]

One Big Beautiful Bill Tax Act – How Can You Benefit?

Focus: Getting The Most Of The Increase In Deduction For State And Local Taxes On July 4, 2025 President Donald J. Trump signed into law H.R.1 – One Big Beautiful Bill Act (“OBBBA”).  OBBBA contains hundreds of provisions including permanently extending the individual tax rates Trump signed into law in 2017, which were originally set to […]

Senate Confirms Trump’s Pick For IRS Commissioner – Billy Long. What Could This Mean To The Future Of IRS Tax Enforcement?

On June 12, 2025, the Senate confirmed President Donald Trump’s nomination of former U.S. Rep. Billy Long of Missouri to be Internal Revenue Service commissioner, clearing the path for him to begin a term that will end in November 2027. While the waiting for the Senate to confirm Billy Long, President Trump had promoted Gary […]

Supreme Court Reverses IRS Loss Giving The IRS A “New Tool to Avoid Accountability”

Tax levies are the way that the Internal Revenue Service gets your immediate attention. What they are saying is … We have tried to communicate with you but you have ignored us. Tax Levies Are Different Than Tax Liens Levies are used to seize your wages (commonly referred as garnishment) and whatever other assets you have: […]

How Can The Reductions In IRS Workforce Impact You?

As we all have to file tax returns, pay taxes and be subject to enforcement of the tax laws, now is the time to prepare and seize opportunities to save. Reductions In IRS Workforce Since January 2025, there have been several executive orders to reduce the size of the federal workforce. According to a report […]

California Raising Cannabis Taxes In 2025

The California Department Of Tax And Fee Administration (CDTFA) which oversees the reporting and collection of taxes for the California cannabis, in consultation with the Department Of Finance, is required by law to adjust the cannabis excise tax rate for the 2025-26 fiscal year and every two years thereafter. The rate change reflects an additional […]

Trump’s Pick For Acting IRS Commissioner – Michael Faulkender. What Could This Mean To The Future Of IRS Tax Enforcement?

While President Trump’s nominee, former U.S. Representative Billy Long of Missouri, to head the IRS is waiting for approval by the Senate, President Trump had promoted Gary Shapley as the new acting IRS Commissioner replacing Melanie Krause, who resigned from her role as acting IRS commissioner over a deal to share immigrants’ tax data with […]
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