Cannabis Taxation in Massachusetts
Boston Tax Attorneys Representing Cannabis and Marijuana Businesses
When Massachusetts legalized marijuana in 2017, it opened up an entirely new industry complete with cannabis taxation rules. Cannabis and marijuana businesses flocked to Boston and other cities around the Commonwealth, and entrepreneurs quickly sought to capitalize on Massachusetts’ new legal marijuana market.
However, while marijuana is legal in Massachusetts, it is still heavily regulated and is still a Schedule I controlled substance under federal law. Among various other implications, this means that cannabis and marijuana businesses in Massachusetts face a number of challenging tax-related issues. Attorney Kevin E. Thorn is prepared to help you with your Massachusetts cannabis taxation problems. Contact him today to discuss your specific situation.
What Do Massachusetts Cannabis and Marijuana Business Owners Need to Know About Tax Law?
State and Federal tax law compliance is a necessary part of doing business in any industry. For cannabis and marijuana businesses in particular, avoiding scrutiny from the Massachusetts Department of Revenue (DOR) and the Internal Revenue Service (IRS) is of critical importance. Not only could tax law violations lead to interest and financial penalties, but it could also lead to regulatory action (including license revocation), and it could potentially trigger a broader state or federal law enforcement investigation as well.
At Thorn Law Group, our Boston tax attorneys represent cannabis and marijuana businesses in all aspects of state and federal tax law compliance. We serve clients in all sectors of the cannabis industry, including:
- Medical Marijuana Dispensaries
Since marijuana is legal in Massachusetts, complying with state tax law is a relatively straightforward matter for cannabis businesses. We emphasize “relatively” because there are still numerous issues that need to be considered when it comes to collecting, reporting, and remitting sales and income tax at the state level. However, the federal level is where things get particularly complicated. As a business owner, you are required to report your business and personal income to the IRS. Since marijuana is illegal at the federal level, you cannot legally deduct any expenses related to your cannabis business operations.