These days, over half the country (32 states + DC) has some level of pot legalization, whether for medical or recreational use or both. Despite the way our founding fathers established states’ rights, when the federal government’s laws conflict with state laws – the Internal Revenue Code will follow federal law for U.S. income tax purposes.
The good news is, buried in the spending bill last December (Public Law No: 113-235), Congress included a provision to end federal drug enforcement raids on medical marijuana establishments. In effect, it legalized medical marijuana on a federal level.
This is an interesting opportunity for accountants and tax professionals to cater to a readily-identifiable niche market that can afford our fees…
Read the full article at http://www.cpelink.com/Marijuanas-tax-paradox