Accounting and Taxes

Accounting and Tax Rules Related to Cannabis

Consultant Meeting with Cannabis Business Owner
Accounting and TaxesCompensation and Equity

Understanding the New QPAM Exemption Rules: A Comprehensive Guide

Marshall Fieldsong

The QPAM exemption is a pivotal regulatory measure that allows employee benefit plans to engage in transactions that would otherwise be prohibited under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. This exemption is crucial for investment fiduciaries, including fund managers and investment managers, as it facilitates smoother and lawful operations by providing a clear framework within which these transactions can occur.
The primary purpose of the QPAM exemption is to prevent conflicts of interest and ensure that transactions are conducted in the best interests of the plan participants. By leveraging this exemption, investment managers can engage in transactions with parties that would otherwise be considered prohibited due to potential conflicts of interest, provided they meet certain stringent criteria designed to protect the interests of the plan beneficiaries.

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advising 280E
Section 280E

Navigating the Impact of Section 280E and the DEA’s Proposed Marijuana Rescheduling

Editorial Staff

he tax rules governing when expenses are paid or incurred and the filing of past or prospective claims can be complex. Following rescheduling, or possibly before, the IRS may issue guidance on how rescheduling impacts Section 280E and the deduction of marijuana-related expenses. Meanwhile, cannabis businesses should consult with tax professionals to strategically time expenses and submit necessary documentation to secure potential refunds for taxes paid under Section 280E.

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Accounting and Taxes

Executive Compensation and Changes to Tax Regulations Impacting the Cannabis Industry

Editorial Staff

GPT

In the rapidly evolving cannabis industry, strategic executive compensation is crucial for attracting top talent and ensuring regulatory compliance. The Tax Cuts and Jobs Act (TCJA) has significantly impacted the tax deductibility of executive pay, eliminating the performance-based exception for compensation over $1 million. This change, coupled with complex accounting for equity awards under ASC Topic 718, requires cannabis companies to navigate carefully through these financial and regulatory landscapes to optimize their tax positions and maintain financial robustness.

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Court of Law
Accounting and Taxes

Guidance Issued on Payroll Tax Deferral for Cannabis Companies

Editorial Staff

The IRS issued much-anticipated guidance on the payroll tax deferral that was ordered by President Donald Trump in a presidential memorandum on Aug. 8 (Notice 2020-65). The notice allows employers to defer withholding on affected employees’ compensation during the last four months of 2020 and then withhold those deferred amounts during the first four months of 2021.

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