Budz Accounting

The IRS is coming after small businesses! Cannabis businesses have a higher risk of audit due to not having access to banking services that all other businesses have, thus resulting in a very cash-heavy business. The IRS views this as being ripe for hiding taxable revenue since cash is less traceable. A cannabis business needs controls in place to properly account for the cash and tie it out to other reports properly, which will help pass the audit.

IRS Adding Thousands of Auditors as It Prepares to Ramp Up Enforcement The Internal Revenue Service is already staffing up, hiring thousands of new auditors in preparation for a tax-enforcement push that’s a key financing element of President Biden’s infrastructure plan. IRS officials said at a tax conference Friday that they are adding about 2,000 new employees, i...