Tax issues with marijuana

4/24/15–Tax advisors will be encountering issues with respect to the representation of businesses and recreational or medical marijuana users. The main issues stem from the fact that, case even though states are legalizing these businesses and activities, ed at the federal level marijuana remains a Schedule I drug under the Controlled Substances Act of 1970. The IRS follows the federal law in viewing these businesses as illegal businesses for tax purposes. This creates a number of tax issues for representing these clients, as well as criminal exposure and possible ethical issues with respect to the professional licenses that a particular tax advisor may hold. Read