Tax Implications of Reclassifying Cannabis From a Schedule I to a Schedule III Drug
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE webinar will provide tax professionals guidance on key tax implications of rescheduling cannabis from a Schedule I to a Schedule III drug. The panel will discuss the recent move by the Department of Justice to reclassify cannabis as a less harmful Schedule III drug under the Controlled Substances Act, its impact on federal and state-level taxation, Section 280E, and tax planning methods and reporting requirements for cannabis businesses under current tax law.
Outline
- Tax issues in operating a cannabis business under current tax law
- Section 280E: impact of rescheduling cannabis to Schedule III
- Impact on financing and raising capital
- Tax planning techniques to minimize tax liability under current tax law
- Impact of rescheduling cannabis to Schedule III on cannabis tax planning
Benefits
The panel will discuss these and other key issues:
- Application of current tax rules to the cannabis industry and key planning techniques
- Current effect of Section 280E and deduction of the COGS
- What are the business and tax implications of rescheduling cannabis to Schedule III?
- What's the process for cannabis to be rescheduled to Schedule III?
- How would rescheduling affect state tax returns?
- What happens to past taxes owed under current tax law?
- What happens to pending court cases challenging the constitutionality of Section 280E?
- What steps can cannabis businesses take in preparation for the new rules taking effect?
Faculty
Ani Galyan, Esq, CPA, LL.M
Certified Tax Specialist
Galyan Law
Ms. Galyan is an attorney admitted to practice in California and is a Certified Tax Specialist. She is... | Read More
Ms. Galyan is an attorney admitted to practice in California and is a Certified Tax Specialist. She is a certified public accountant admitted to practice in California. Ms. Galyan also holds a Masters in Tax Law (LL.M). She focuses her practice in the area of tax law for federal, state and local tax compliance, tax disputes, and tax crimes. Ms. Galyan has a knack for recognizing emerging industries and becoming a well-informed tax advisor to her clients within the specialty area. She has been in the forefront of representing cannabis operators in the state of California in all aspects of federal, state, and local tax compliance matters. In addition, Ms. Galyan has advised clients on cryptocurrency reporting obligations and navigating the complex reporting requirements for cryptocurrency investors. She regularly speaks, writes, and provides continuing education to other professionals relating to the taxation of cannabis and crypto-currency activities. Ms. Galyan has served on the Board of Directors for California CPA Society-Los Angeles Chapter, and co-chair of the Beverly Hills/Hollywood CalCPA Discussion Group. She is a founding member of Armenian American CPA Society and is a member of the American Bar Association, California Lawyers Association, Beverly Hills Bar Association and other organizations relating to the field of taxation and banking. Ms. Galyan was recognized as Southern California Lawyers "Rising Star" in 2016 through 2023. She was also a CalCPA Women to Watch Nominee finalist in 2015 and 2017.
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Jonathan Kalinski
Principal
Hochman Salkin Toscher Perez
Mr. Kalinski specializes in both civil and criminal tax controversies as well as sensitive tax matters including... | Read More
Mr. Kalinski specializes in both civil and criminal tax controversies as well as sensitive tax matters including disclosures of previously undeclared interests in foreign financial accounts and assets and provides tax advice to taxpayers and their advisors throughout the world. He handles both federal and state tax matters involving individuals, corporations, partnerships, limited liability companies, and trusts and estates. Mr. Kalinski has considerable experience handling complex civil tax examinations, administrative appeals, and tax collection matters. Prior to joining the firm, he served as a trial attorney with the IRS Office of Chief Counsel litigating Tax Court cases and advising revenue agents and revenue officers on a variety of complex tax matters.
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