Cannabis
Executive Order to Reschedule Cannabis: What It Means for IRC 280E
On December 18, 2025, President Trump issued an Executive Order directing the Department of Justice (DOJ) to expedite the rescheduling of cannabis to Schedule III under the Controlled Substances Act (CSA). This action follows the Department of Health and Human Services’ (HHS) 2023 recommendation and represents a major turning point for state-legal cannabis businesses. Why […]
Cannabis Rescheduling: What It Means for Operators and Investors—and How We’ll Help You Navigate It
The federal government’s anticipated move to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act is one of the most consequential policy shifts the industry has seen to date. While this change may promise tax relief, expanded research opportunities, and improved access to capital, it also likely introduces stricter federal oversight […]
Why Tax Planning Should Begin Well Before a Multistate or International Business Sale
When preparing a business for sale, one of the first areas buyers examine is tax compliance. Where a company files state income, sales, and payroll taxes—and whether those filings are complete—can become a central focus of due diligence. Gaps in compliance, or even unintentional oversights, can lead to buyer holdbacks, unexpected liabilities, delays in closing, […]
Seminar Recap: Tax Strategies for Cannabis Operators 2025
During AAFCPAs’ recent Tax Strategies for Cannabis Operators webinar (October 2025), AAFCPAs’ Cannabis practice leaders presented practical guidance to operators on navigating Section 280E compliance, optimizing cost of goods sold, managing cash flow and operational challenges, and evaluating strategies for exit planning, including Qualified Small Business Stock and employee ownership structures. The past year for […]
Tax Strategies for Cannabis Operators Webinar 2025
2025 Tax Planning for Cannabis Operators Webinar Navigate complex tax rules and maximize efficiency with insights from AAFCPAs’ 2025 Tax Planning for Cannabis Operators webinar. Learn strategies to address 280E compliance, optimize operations, and implement tax-efficient plans for your business. In this session, you will learn: Webinar OnDemand
Inventory Costing: One of Cannabis’s Most Misunderstood and Financially Critical Business Processes
Cannabis Business Times (August 06, 2025)- Inventory costing remains one of the most misunderstood and financially consequential areas in the cannabis industry. For cultivators, the process begins in the soil. Costs start accumulating long before harvest, yet many fail to track expenses like nutrients, labor, and overhead as plants move through the stages of clone, […]
Positioning for Profitability: Smarter Compliance and Tax Strategies in Cannabis
The cannabis industry continues to evolve, bringing both opportunities and complexities. As state-level legalization expands, multi-state operators must navigate a patchwork of regulations, each with its own compliance demands. Federal prohibition only compounds these challenges, driving up tax burdens, tightening financial constraints, and adding layers of regulatory uncertainty. For cannabis operators and investors, staying ahead […]
Massachusetts to Automate Penalties on Late Advance Payments Starting July 2025
Beginning July 1, 2025, the Massachusetts Department of Revenue (DOR) will automatically assess penalties on businesses that fail to make required advance tax payments by the 25th of each month. The advance payment requirement, in place since 2021, applies to businesses with more than $150,000 in annual tax liability from certain indirect taxes, such as […]
How to Make Inventory Decisions That Drive Profit
Challenges to Profitability in the Cannabis Industry Profitability in the cannabis industry is challenging due to a combination of regulatory hurdles, banking restrictions, high tax rates, intense market competition, and cash flow management issues. The complex regulatory environment increases compliance costs, while federal laws limit access to traditional banking resources. Additionally, IRS Code Section 280E […]