Nose In The Book Day One

Nose In The Book Day One

Nose In The Book Day One…sometimes “scope creep” winds up being a good thing. This microsite is a consequence of the aBIZinaBOX Cannabis Practice Group’s creation of a “Center of Excellence” to develop and expand “best practices” in accounting, tax and regulatory compliance for the cannabis industry.

noseinthebook – Best Practices Framework using our proprietary “Nose In the Book” techniques to improve accounting and tax reporting for the cannabis industry. The training will focus on lessons that learned from the Tax Court Decisions in Alterman and Gibson TC Memo 2018-83, and Neil Feinberg et ux., et al. v. Commissioner, (2017 Memo 2017-211).

Watch for some exciting developments from aBIZinaBOX including

  • “Our Nose in the Book” Best Practices in Cannabis Business Accounting Webinar Series
  • The rollout of our Accounting Best Practices microsite at noseinthebook.accountants
Best Practices Webinar Topics
  • A concise definition of IRC Sec. 280E and its statutory construction
  • CCM 20150411
  • Best Practices for Tax Accounting including
    • Cloud Software Selection, distinctions for Dispensary, Distribution, Cultivation, and Extraction
    • Creation and maintenance of Books of Account
    • Creation of inventory records, selection of cost flow assumptions and calculation and support of Cost of Goods Sold [“COGS”]
    • Internal Controls over cash and maintaining bank accounts
    • Documentation of business expenses, and IRC Information Reporting – 1099’s
    • Highlights of information records for Excise, Sales and Gross Receipts taxes – the detail here is easily a distinct program
    • Design, maintenance, and retention of records – IRS, FTB, CDTFA and Regulatory Compliance Requirements
    • An interface between accounting function and tax return preparation, tax return work papers and support
    • Review, quality control and documentation of process improvement – IRC Sec. 6694(b)(2) and “a pattern of negligence”

The background articles are must be reading to fully understand the context see Cannabis CPA Becomes Cannibal Lesson From The Tax Court: Into The Weeds on COGS, Alterman TC Memo 2018-83 Alternative View,  Missing Opportunity IRC Sec. 280E and our IRC Sec. 280E Repository.