To assist the national marijuana industry in paying its federal taxes, the Internal Revenue Service issued a series of guidance documents that apparently are aimed at clarifying the process for businesses.
The IRS announced the guidance via Twitter on Friday and wrote on its website that “a key component in promoting the highest degree of voluntary compliance on the part of taxpayers is helping them understand and meet their tax responsibilities.”
The new range of online documents include an FAQ page, guidelines on how to pay taxes in cash, an explanation of Section 280E and links to various forms and regulations that MJ companies need to follow.
The guidance is likely a response by the IRS to a report issued in April by the Treasury Inspector General for Tax Administration.
The report found in part that the IRS has been remiss in not being more specific with the cannabis industry as to what the agency expects of marijuana businesses when it comes to federal tax payments.