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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 YOU need to KNOW!

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:

  • Cultivators
  • Distributors
  • Manufacturers
  • Medical Marijuana Dispensaries
  • Retailers

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.

Register with MassTaxConnect, file a tax return and pay taxes on the sale of adult use marijuana as required by the Massachusetts Department of Revenue:

As of July 1, 2018, the Massachusetts Department of Revenue will collect tax on the sale of adult use marijuana by licensed facilities.
At Thorn Law Group, we can help you meet your cannabis-related tax obligations

Massachusetts Cannabis Handbook

Learn about Massachusetts’ recreational and medical marijuana laws, the licensing requirements for cannabis businesses, and some of the basic tax considerations for cannabis businesses in Massachusetts.

What You Need to Know about Massachusetts Cannabis Business Taxes

Learn about Massachusetts’ sales and excise tax rates for cannabis businesses, and find out what is at stake if your business is non-compliant.

3 Ways a Massachusetts Tax Attorney Can Help Your Cannabis Business

Learn more about Massachusetts’ tax laws for cannabis businesses and some of the challenges marijuana businesses face in maintaining state and federal tax compliance.

How a Marijuana Business Taxation Lawyer Can Help

Our cannabis taxation attorneys can assist you with meeting your state and federal tax obligations in Massachusetts. We can explain in detail all of the taxes your business must collect and pay, and we can help you fulfill your state and federal reporting obligations. We can also assist you in navigating the various nuances of Massachusetts law and the Internal Revenue Code (IRC). For example, while cannabis-related business expenses are ineligible for deductions at the federal level, this is not the case when it comes to reporting your business’s taxable revenue to the Massachusetts DOR. Additionally, if you have business expenses that are not specifically related to your cannabis operations, then these expenses may be eligible for itemized deductions to reduce the amount your company owes the IRS

In Massachusetts, certain municipalities impose local taxes as well. Attorney Kevin E. Thorn and the team at Thorn Law Group can also assist you with meeting those tax obligations. If you own and operate a medical marijuana dispensary, your business is exempt from state and local tax requirements (provided that you only sell to registered patients), but you must still satisfy your reporting obligations in order to avoid unwanted scrutiny.

Our Contract and Tax Law Services for Cannabis and Marijuana Businesses in Massachusetts

As a full-service Boston tax law firm, we represent cannabis and marijuana businesses in Massachusetts in all local, state and federal tax matters including:

  • Sales and Excise Tax Compliance
  • Income Tax Compliance
  • Massachusetts DOR Audits and Appeals
  • IRS Audits and Appeals
  • IRS Criminal Tax Law Investigations
  • Cryptocurrency Taxes

Sales and Excise Tax Compliance

In Massachusetts, cannabis businesses are subject to sales and excise taxes, and businesses in many municipalities are subject to local sales taxes as well. Our cannabis taxation lawyers can help you avoid collection, reporting and remittance errors that carry substantial penalties.

Income Tax Compliance

We assist businesses of all sizes with state and federal income tax compliance. We are intimately familiar with the unique aspects of doing business in the cannabis industry in Massachusetts, and we can help you meet your obligations to the Massachusetts DOR and the IRS.

Massachusetts DOR Audits and Appeals

If your cannabis or marijuana business is facing a Massachusetts DOR audit, or if your business has already been audited and you need to appeal the outcome, our Boston tax attorneys can assist with this as well. We represent clients in audits and appeals throughout the Commonwealth.

IRS Audits and Appeals

We also routinely represent clients in federal tax audits and appeals. We have successfully represented clients in all types of IRS audits and at all stages of the IRS appeals process.

IRS Criminal Tax Law Investigations

If your cannabis or marijuana business is facing a criminal tax law investigation, our lawyers can defend you and your company against facing federal charges. We have extensive experience in federal criminal tax law investigations, and we can use this experience to your advantage.

Cryptocurrency Taxes

If you accept payment in the form of cryptocurrency, this opens up an entirely different set of compliance issues. In addition to assisting clients with cannabis-related tax compliance, we assist clients with cryptocurrency tax compliance as well.

Speak With Skilled Lawyer Kevin E. Thorn About Marijuana and Cannabis Taxation in Massachusetts Today!

If you need legal advice regarding your cannabis or marijuana business’ local, state or federal tax obligations, Kevin E. Thorn, Managing Partner at Thorn Law Group can help. To request a confidential consultation with a cannabis taxation lawyer, please email us at ket@thornlawgroup, call 617-692-2989 or inquire online today. Visit our Boston office at 10 Post Office Square, 8th Floor, Boston, MA 02109.

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