IRS - IRS Clarifies Cash Reporting For Marijuana Businesses Reveals No Automatic 'Suspicious Activity' | Benzinga
The Internal Revenue Service (IRS) recently cleared up confusion for cannabis businesses regarding cash transactions and tax reporting.
The agency issued a memo emphasizing that involvement in the federally prohibited marijuana industry should not automatically trigger suspicion when reporting large cash payments.
This guidance comes in response to inquiries about Form 8300 which businesses must file when they receive cash payments of $10,000 or more.
"The memorandum provides guidance on many of these issues in a question-and-answer format," said Charles Hall, special counsel with IRS, wrote Marijuana Moment's Kyle Jaeger on Tuesday. "We are working on additional guidance on questions related to cash couriers/armored cars who transport cash between growers/manufacturers and dispensaries/sellers."
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The document offers advice on various compliance issues, including how to identify the recipient of the cash payment. Businesses can disclose their connection to cannabis though alternative categories, like general agricultural products, are also acceptable options.
This important conversation around cannabis taxation without much representation will be in the ...