Kick off the AICPA & CIMA Cannabis Industry Conference with shared insights from three industry leaders; Zachary Gordon, Melissa Diaz, and Katye Maxson-Landis. This session will give accountants a starting point for providing services to the cannabis industry. Cannabis faces considerable challenges resulting from its federal illegality: banking, legal and tax limitations (such as 280E). Learn efficient strategies to tackle these industry obstacles and which tech solutions are ideal for cannabis. Finally, create a tax position that ties together cannabis accounting theory with best practices and ultimately, prepare 280E tax returns that are conservative, consistent and defensible.

Learning Objectives:

• Identify the banking, legal and tax challenges present in cannabis
• Discuss strategies to address the unique difficulties of working with 280E businesses
• Outline which technology solutions are cannabis compliant
• Examine how to put theory and innovations into practice for tax preparation

We will cover:

Why Cannabis companies are prime targets for audits (and how you can help them prepare for the inevitable audits)

Cost Accounting primer for the niche, & why is it so important for these companies

Entity structures and why this is important

Tools and processes needed to serve the niche

Day-to-day and month end accounting processes

Issues related to Startups and Capital Raises

Learning Objectives:

• Learn the basic of cost accounting for the various sub-niches (Farming, Chemical Processing, Product Manufacture, Retail)
• Learn key issues affecting startups and capital raises

Finding solutions to the challenges of 280E to stay compliant and profitable within the Cannabis Industry.

Learning Objectives:

• What is IRS code 280E
• What can be deducted under 280E - tax strategies/compliance
• How to plan and prepare your business for a tax based 280E audit
• How to avoid operational inefficiencies - limited funding sources

With consolidation of the industry occurring in real time, join us for a discussion of how to help your clients prepare for and navigate both buy and sell side M&A transactions. Our panel will consider valuation ranges and strategies to bridge gaps between buyer and seller, navigating regulatory requirements, utilizing tax efficient structures, best practices from both the seller’s and buyer’s perspective and common pitfalls to avoid.

Learning Objectives:

• Participants will learn about the trends driving industry consolidation and whether those trends will continue in 2022
• Participants will learn practical tools and strategies to advise their clients on how to navigate the wave of consolidation impacting the industry

This presentation will provide an overview of tax litigation involving IRS audits of cannabis companies and the application of Section 280E. The discussion will include cases defining trafficking, cases discussing separate trade or business issues, cases resulting in double taxation, the application of penalties to underpayments caused by the improper reporting of Section 280E, cases addressing inventory accounting (including the application of Section 471 and 263A), and constitutional arguments. The speaker will share her experiences with IRS audits and litigation of Section 280E issues.

Learning Objectives:

• • Gain basic understanding of tax litigation based on IRS challenges to the application of Section 280E on tax returns.
• • Identify strengths and weaknesses in various tax reporting by cannabis companies.

A discussion of social equity initiatives that have been built in to the licensing requirements as the cannabis industry has matured.

Learning Objectives:

• Participants will learn the motivations of social equity initiatives in cannabis legislation
• Participants will learn the requirements in some states for creating greater opportunities for historically marginalized communities in the cannabis industry.
• Participants will learn some common challenges and things to consider for practicing CPAs working with social equity cannabis license holders.

Legal marijuana is one of the fastest-growing industries in the United States, despite operating under a patchwork of conflicting laws and ever-changing regulations. Now, with 19 states regulating adult-use sales and 36 states allowing medical marijuana sales, the cannabis industry is coming out of the shadows and beginning to be accepted and treated as a significant, professional sector. As state legalization laws pass at a rapid pace and a federal legalization bill is poised to be introduced in the United States Senate for the first time, a historic opportunity presents itself to participate in the creation of a new national marketplace rooted in fairness and equity.

Learning Objectives:

• Understand the current status of legal and medical marijuana and hemp throughout the United States.
• Discover how current and developing state regulatory frameworks are building on previous lessons learned.
• Consider how potential federal laws are poised to rapidly change the cannabis industry.

Whether you are a service provider advising clients’ on having their cannabis operations audited,  have experience in providing audit services to the industry or are considering providing audit services, you will want to join this discussion regarding the unique issues and challenges of cannabis auditing and how to evolve audit procedures as your client and the industry matures.

This session is designed to showcase the professional team that cannabis businesses need to surround themselves with in order to truly run a successful operation.  Hear about the necessary interactions and cautions between legal and accounting issues which is imperative for practitioners to understand and respect.  Understand the role of each professional and how each supports each other in this highly complex, constantly evolving industry.  Hear stories from the trenches regarding the importance of working with industry experts.

Learning Objectives:

• Understand the role of the CPA in the cannabis industry and the interaction of the role of the attorney to the CPA.
• Understand the complexities between legal advice and accounting and business advice and where the lines should be drawn.
• Be aware of red flags in client acceptance, client continuance, and how to rely on your network of professionals to properly serve your clients.

This panel will discuss resolved and unresolved Section 280E litigation, with a focus on how Section 280E litigation needs to be considered in due diligence, transactions, and tax reporting. After laying that groundwork, we will cover the pros and cons of common structures. This panel will also discuss the impact of cannabis industry regulatory compliance on structuring, transactions, and financial reporting.

Learning Objectives:

• Understand the IRS's evolving position on the impact of Section 280E on tax inventory accounting and the unresolved questions involving the application of Section 280E
• Identify the pros and cons of flow-through and C corporation structures in the cannabis industry.
• How to develop a comprehensive approach to planning and structuring taking into account regulatory and financial reporting requirements.

The session will explore the unique nuances associated with the cannabis industry, including business and intellectual property appraisal challenges. Finding and applying market-based metrics in a rapidly evolving landscape will be contrasted with the use of forward-looking projections under an income approach to value. Jurisdictions like Colorado, Oregon and Washington are now considered to represent established markets versus emerging markets like Michigan, New Jersey and Florida where some are paying premium prices today for potential future opportunity. Lessons learned from Colorado will be highlighted. The session will also briefly explore the challenges of IRC 280E and where to find industry data and resources.

Learning Objectives:

• Gain an understanding of the unique nuances associated with appraisal assignments in the cannabis sector
• Explore the application of the income and market approaches to value
• Identify where to find industry resources

In this session you will learn about the intersection between taxes, accounting, IFRS vs. US GAAP, and complex business structures which make the cannabis industry ripe for fraud.  Identify red flags of fraud and trace cash flow through complex business entities to understand what to look for in areas of due diligence, investor education, and business structure assistance and set-up.  

Learning Objectives:

• Understand the complex business structures of cannabis companies and how and why they may be ripe for potential fraud
• Understand cannabis cash flows including the consideration of taxes and other charges as compared to financial statements
• Learn from real live cannabis fraud and due diligence cases regarding what to be aware of for both investors and acquirers