The American Institute of CPAs is asking the U.S. Department of Treasury and the Internal Revenue Service to issue new guidance to cannabis businesses and tax preparers in anticipation of a change to marijuana's classification to a Schedule III controlled substance instead of a Schedule I, according to an Oct. 21 letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel.
"Since the beginning of the decriminalization and legalization of marijuana across a growing number of states, cannabis businesses and their CPAs have struggled to walk the tightrope of an industry that is locally legal, but federally illegal," Melanie Lauridsen, vice president of tax policy and advocacy for the AICPA said in a statement included in a release Thursday announcing the letter.
"It's imperative that the federal government's tax administration bodies provide guidance to these profitable businesses and their advisors in advance of the rescheduling of marijuana to help ensure a clear understanding of their federal tax obligations and mitigate non-compliance," Lauridsen said.
Read more at CFO Dive.