Tax Notes reported on a panel discussion, entitled “Cannabis is Going National — Opportunities and Pitfalls,” led by moderator and K&F partner Lawrence Sannicandro, at the 2021 Federal Bar Association Tax Conference.
Prompted by Mr. Sannicandro, panelists discussed how the legal and tax landscape for cannabis companies continues to change and, as it does, how tax authorities and practitioners are being called on to apply a dizzying array of federal and state tax laws and regulations when grappling with questions of enforcement and compliance.
As Tax Notes observed, panelist Guy Ficco, IRS Criminal Investigation Director of Operations, noted that the IRS will not be targeting cannabis operations specifically, but will treat them “like any other cash-intensive business.” Ficco also “confirmed that it’s the IRS’s position that cannabis-based income is illegal-source income, making cannabis taxpayers ineligible to participate in the agency’s formal voluntary disclosure program,” according to Tax Notes.
Other panelists included Jennifer Benda of Hall Estill; Jonathan Kalinski of Hochman Salkin Toscher & Perez, P.C.; and Kelley C. Miller of Reed Smith, LLP.
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