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Travis Watkins Tax Firm Now Tackles Oklahoma Cannabis Taxation

Posted by Jamie Crews | Dec 16, 2021 | 0 Comments

You handle the buds; we'll handle the bookkeeping.

People don't get involved in Oklahoma's cannabis industry because they love filing taxes. Indeed, many would-be cannapreneurs get spooked out of this market because of all the confusing cannabis-related regulations. 

Travis Watkins Tax Firm Can Take The Strain Out Of Dispensary Bookkeeping.

Given marijuana's Schedule I status, regulators hold legal dispensaries to some pretty strict standards. To make matters more challenging, state and federal laws still aren't in-tune with this plant's legal status. 

If you're stressed about the ever-changing laws involving cannabis taxation, you should give Travis Watkins Tax Firm a call. Our team of cannabis CPAs keeps track of the national and local developments in this dynamic field. With one of our cannabis CPAs on your side, you can rest easy knowing your business will remain compliant and only pay what's required by law. 

Why Should Dispensaries Consider A Cannabis-Specific CPA?

If you operate a legal cannabis business, the IRS has a target on your back. To put it bluntly, taxing cannabis dispensaries is more lucrative than non-cannabis businesses. Since marijuana isn't legal under federal law, dispensaries can't claim the same deductions as other small businesses. This makes it simpler for federal agents to issue audits on cannabis dispensaries.

Although states like Oklahoma are opening up to legal marijuana, all cannabis businesses are subject to US Code 280E. First crafted in the 1980s, this law forbids any company that handles federally illegal substances from claiming multiple tax deductions. Obviously, this puts cannabis dispensaries at a greater disadvantage if they don't know what to look out for. 

Dispensaries that work with CPAs who aren't trained in cannabis law won't enjoy the legal protection they need to survive in this industry. If your accountant doesn't know how dispensary accounting differs from other businesses, you're setting yourself up for a costly IRS audit.

At Travis W. Watkins Tax Firm, our cannabis CPAs constantly monitor state and federal laws specific to the legal weed industry. Not only could our cannabis accountants help keep your business in the clear, they can advise you on ways to mitigate your tax expenses. 

Keep Your Operating Costs Low With A Certified Cannabis CPA

While 280E makes it difficult for OK cannabis businesses to thrive, there are ways dispensaries could decrease their tax burden. A trusted cannabis CPA will know how to advise dispensaries on an optimal business organization. 

For instance, we can help you structure your dispensary's layout to best comply with Oklahoma 280E standards. Our dispensary CPAs could also help you choose the best business practices to reduce your tax burden.

Of course, the best way to reduce your tax burden is to keep immaculate financial records. Regulators require a ton of paperwork from compliant cannabis businesses, which means you need to stay on top of all your cash flows. To thrive in this strict legal climate, dispensaries need reliable bookkeepers on their advisory team. 

Please remember that dispensaries don't enjoy the same banking privileges other businesses have. You may have heard horror stories of cannabis owners who use armored vehicles to transport their cash. Until there's greater leniency at the federal level, dispensaries can't rely on the banking system to keep tabs on their transactions. 

Since most dispensaries don't have access to traditional banking, they must log all this data into a secure digital system. Also, if you're one of the many cannabis businesses that accept cryptocurrencies, please remember special tax policies exist for these payment options. 

The cannabis CPAs at Travis Watkins Tax Firm place a great emphasis on collecting and organizing all relevant tax info to comply with OK's cannabis standards. When you speak with one of our dispensary advisors, you'll learn exactly what and how you should keep track of your business expenses. 

Our CPAs can also advise you on which cannabis point-of-sale (POS) software best fits current federal and state laws. Using hi-tech tools like POS is vital for collecting and storing relevant tax information. Even if you're not familiar with these systems, Travis Watkins Tax Firm will take the time to explain how to install and use them in your practice. 

Facing An IRS Audit? Travis Watkins Has Got Your Back

At Travis W. Watkins Tax Firm, our primary goal is to prevent the IRS from auditing your cannabis business. However, there's always a chance the IRS could come after your dispensary for tax-related issues.

If the IRS ever requests an audit from your dispensary, please don't panic. The first step to successfully deal with this issue is to contact one of our dispensary CPAs. 

Travis Watkins Tax Firm has years of experience with IRS audits. We'll help you sort through your financial records to comply with federal authorities throughout the auditing process. We can also provide top-tier representation to ensure you get the fairest hearing.

While IRS audits can be stressful, they aren't the be-all-end-all for your business. You can succeed if you have a qualified cannabis COA to help you through the process. 

Need Help With Cannabis Bookkeeping? Call UsFor Your Free Estimate! 

Cannabis law is neither stable nor straightforward. No matter how often you read about this drug's legal status, it's likely there are dozens of finer details you aren't aware of. Not knowing the intricacies of cannabis taxation could seriously cut into your company's bottom line. At worst, failure to abide by state and federal cannabis laws could end your business prospects. 

Only a trusted legal team with a cannabis-specific division can ensure your bookkeeping is up to standard. Luckily for Oklahoma dispensaries, Travis W. Watkins offers our professional accounting services for dispensaries. On top of bookkeeping, our Oklahoma 280E CPAs can offer tax prep, guidance, and audit representation services. Basically, if it's anything related to cannabis and taxation, Travis W. Watkins can help you out. 

For a free consultation on our cannabis accounting services, please call Travis W. Watkins Tax Firm at (866) 817-0090. All calls to this number are toll-free and confidential. You could also reach out to our team by filling out the Contact Us form. 

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