Cannabis Business – Paying Taxes

Cannabis Business – Paying Taxes

Cannabis Business – Paying Taxes is a quick summary of how a cannabis business can pay its taxes if it doesn’t have a bank account.

We need to pay:

Internal Revenue Service  
Cannabis Business - Paying Taxes
Internal Revenue Service

– See https://www.ustreas.govJeducationJfag/currency/legal-tender.shtml. While the U.S. government is required to accept cash in payment of taxes or other debts. there is no statute or requiring the United States to accept cash payments at each and every location that accepts payments. The Service has approximately 400 Taxpayer Assistance Centers (TACs). Taxpayers are able to make payments at each of the TACs.

California FTB 

In its March newsletter, the California Franchise Tax Board announced its policy for cannabis clients that are only able to pay their tax obligations with cash.  Because of the difficulties with opening or maintaining bank accounts for marijuana-related business, many taxpayers in the cannabis industry are only able to pay their obligations with cash.  The FTB reminds that, in general, it has a no cash policy and provides a link to its payment options page. However, the FTB recognizes that some taxpayers may experience a hardship if required to pay by means other than cash. Those taxpayers may apply for an exemption to the no cash policy using FTB Form 3711.

Once the exemption application has been received, the FTB will respond in writing within 2 business days. If approved, the taxpayer or their representative may then contact the nearest FTB field office to schedule an appointment to make the cash payment. Requests for appointments need to be made at least 2 business days prior to the date you wish to make the payment.

If the taxpayer is required to make mandatory e-payments, we recommend that you also complete and submit Form 4107, Mandatory e-Pay Election to Discontinue or Waiver Request for individuals, or Form 3816, Electronic Funds Transfer Election to Discontinue or Waiver Request for business entities, each time a cash payment is made.

California CDTFA

– Procedure For CDTFA Cash Payments -CDTFA has updated its

Cannabis Business - Paying Taxes
California Dept. of Tax and Fee Administration

procedure for CDTFA cash payments. The procedure requires that all cash payments be made by appointment only at designated offices. You must call your local office for an appointment to make your payment at least 3 business days in advance. You will be given the date, time and location to transact your payment. If you do not have an appointment, your payment will not be accepted.

Reporting the Receipt of Over $10,000 Cash Received – Form 8300

– Is Your Business Filing the Proper Cash Transaction Forms?

Has your business ever received a large cash payment, and you were not quite sure what your reporting obligations were regarding that large payment? The general rule is that you must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business if your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.

The Form 8300 provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN)

in their efforts to combat money laundering. This is an important effort since money laundering is a tool used to facilitate various criminal activities, ranging from tax evasion to terrorist financing to drug dealing, to hide the proceeds from their illegal activities.