When you own a Cannabis business, taxes can become extremely complicated to understand and keep up with. Here is just one example of a client we saved from heavily overpaying on their cannabis business’ taxes!
Case #1: Our client owned a cannabis dispensary in Oklahoma and needed help navigating their business taxes. In the state of Oklahoma, cannabis dispensaries are required to pay a medical marijuana excise tax of 7% in addition to sales tax. When the client came to us, our team found that they were charging the medical marijuana excise tax on everything they sold, including items where the excise tax was not required. We discovered that they actually over-paid on the excise tax by over $80,000! Our team immediately went in and amended the company’s business reports with the state and fought the Oklahoma Tax Commission to get them as much of that money back as possible. We ended up getting our client a full refund from the state on the taxes they unknowingly overpaid on!
IRS audits are something that every business owner should be prepared for, but it is usually much easier said than done. Having a tax professional on your side can help save your business money when it comes to being audited. In our next case, we saved our client over $1.1 million!
Case #2: These clients owned a construction company and were being audited over amounts of their business expenses claimed such as travel, wages and cost of goods sold. The IRS was originally proposing an assessment that the business owed about $1,036,800 in liabilities for tax years 2014-2016, in addition to about $254,000 in penalties for those tax years. Our audit team fought the IRS counsel, and got them to approve many of the business expenses that were being disallowed. After much negotiation, we were able to file a settlement on behalf of the client’s business, saving them approximately $1,124,148!
Additional Readings
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