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July 23, 2021 54 min
Even though forty-five states permit marijuana, and one-third of Americans live in a location where recreational marijuana use is legal, it is still a controlled substance as a matter of federal law. Supreme Court justice Clarence Thomas recently wrote: “Once comprehensive, the Federal Government’s current approach is a half-in, half-out regime that simultaneously tolerates and forbids local use of marijuana. This contradictory and unstable state of affairs strains basic principles of federalism and conceals traps for the unwary.” Including accounting and tax traps. Ken Teasdale, audit partner at Armanino, will help us understand the many complex issues associated with this industry.
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