Massachusetts legalized marijuana for adult use in 2016 and began collecting taxes on the sale of marijuana in 2018. If you are currently operating a cannabis business or you are considering starting one, there are several things you need to know to ensure that you are in compliance with Massachusetts law. Understanding your tax responsibilities is critical to ensure the success and longevity of your business. If you have questions about your tax obligations, contact Boston cannabis tax attorney Kevin E. Thorn to ensure you are in compliance.

If you are one of our state’s cannabis entrepreneurs, you are most likely focused on developing your business, growing your customer base and providing a quality product at a competitive price. Like many other business owners, paying taxes may be an afterthought. Unfortunately, failing to give the appropriate time and consideration to your tax obligations cannot only result in financial penalties but may even result in criminal prosecution. Hiring an experienced Massachusetts tax attorney is an investment in the current and future success of your business.

Two recent raids targeting businesses in Springfield, Massachusetts suggest that federal and state law enforcement agencies may soon be targeting other similar types of businesses in similarly-sized cities such as Worchester, Massachusetts and Providence, Rhode Island. The raids were conducted by the Internal Revenue Service (IRS) and Federal Bureau of Investigation (FBI) in coordination with Massachusetts State Police and targeted a local strip club and restaurant. It is unclear whether the raids followed an IRS audit or were triggered by other factors.

According to a recent AP news report published on Boston.com, Internal Revenue Service (IRS) agents recently raided two Massachusetts businesses working in cooperation with the Federal Bureau of Investigation (FBI) and Massachusetts State Police.

U.S. taxpayers holding previously undisclosed offshore accounts have had to deal with a recent change in the tax laws. The Offshore Voluntary Disclosure Program (OVDP) used to be the IRS program allowing offshore account holders to report previously undisclosed accounts, while reducing tax penalties and avoiding criminal exposure. When the IRS ended OVDP in September 2018, the new voluntary disclosure program now applied to these same taxpayers holding offshore accounts.