Archives for April 2018

Affordable Care Act: What Employers with Fewer than 50 Employees Need to Know

As an employer, the number of employees you have during the last calendar year determines which parts of the health care law apply to your organization. If you are an employer with fewer than 50 full-time employees, including full-time equivalent employees, here are three things to know about how the health care law affects you.

Information Reporting

If you offer employer-sponsored self-insured health coverage to your employees, you will use Form 1095-B, Health Coverage Information Return to report information to covered individuals about each person enrolled in coverage. The deadline for filing this form with the IRS is February 28, 2017, or March 31, 2017 if filing electronically. The deadline for furnishing this form to the covered individual is March 2, 2017, which is a 30-day extension from the original due date of January 31.

Tax Credit: You may be eligible for the small business health care tax credit if you meet all of the following conditions. You:

o cover at least 50 percent of employees’ premium costs

o have fewer than 25 full-time equivalent employees

o pay average annual wages per full-time equivalent employee of less than $52,000 in tax year 2016

o purchase coverage through the SHOP Marketplace

Small Business Health Care Tax Credit: Questions and Answers

Federal law gives a tax credit to eligible small employers who provide health care coverage to their employees. Questions and answers provide information on the credit for tax years beginning in 2014.

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How to Grow Weed at Home: Choose Your Light

Getting Started Growing Cannabis Indoors

Approximately 70% of the U.S. population consumes cannabis at least on occasion, but for many people, cannabis is far more than a plant they enjoy when it’s around.

Instead, cannabis is a way of life, a religion, and an escape from the sometimes harsh realities of life, whether it is aches and pains or sadness interfering with your well-being. Enthusiasts who understand the sheer magnitude of cannabis oftentimes find the cultivation process one that heightens their experience. This God-given plant has powers unbeknownst to some, but for the true cannabis enthusiasts, its amazing qualities are undeniable. Growing weed indoors offers the perfect opportunity to take your cannabis love to the next level.

Now that marijuana has become a hot topic around the country, many of the stigmas that once surrounded the plant are gone and more people are learning and accepting that it is a beneficial plant and a far cry short of the Class I narcotic the federal government has it labeled as. Currency eight states allow usage and cultivation of marijuana for recreational use, while more than 40 have legalized cannabis use and cultivation for medicinal purposes. Marijuana research is being conducted at universities, elite members of our community are showing their support, and advancements are being made every single day. Nonetheless, it is a crime to grow marijuana without a medical red card (How to apply for medical marijuana card?) if you don’t reside in a legal state.

Growing marijuana indoors alleviates the worry. Many people are growing cannabis indoors as we speak, producing large, beautiful, plants filled with those delightful buds that you so greatly appreciate. If you’re ready to join the trend, learning how to grow is the first step. Growing marijuana indoors isn’t as difficult as some people would assume. In fact, it takes just 10 simple, easy steps to grow!

What You’ll Need to Monitor During Growing

Growing marijuana indoors allows you to keep an eye on the entire growth process. Marijuana is a plant that requires lots of attention if you want it to yield powerful, potent results, though the overall process is fairly simple once you get the swing of things. Checking in on your plants three or four times per day can help yield the best results, especially for the beginning grower.

It is important to monitor the amount of air and light that the plant receives when growing marijuana indoors. Marijuana is a native outdoor plant and thrives when pristine conditions are noted. Thus, proper air flow, proper light, and the right amount of moisture are key ingredients to a successful grow.

Flowering plants like marijuana produce fruits only once per year during the fall season. They’re fruitful during this cooler period after receiving sunlight and nutrients during the warmer months. It’s called a photosynthesis period and is a process that you’ll need to reproduce when growing marijuana indoors. To do this, the plants need up to 16-hours of light during the seedling stage and approximately 12-hours during the flowering process.

The photosynthesis also requires proper air be delivered to the plant. All plants need air to survive, including the cannabis plant. A steady stream of airflow in the grow room is essential to a healthy marijuana plant. Marijuana plants thrive in temperatures ranging from 70 F to 85 F; an exhaust fan can help you maintain these temperatures. Since some strains of the marijuana plant prefer lower temperatures while others thrive when temperatures are closer to the highest temperature point, it is important to properly educate yourself on the preferences of the seedling before you begin.

Step 2: Choose Your Light

Plants Grow Light

Grow lights provide the marijuana plants the light they need to thrive and reproduce. Quality lighting in the grow room is imperative to a good grow. It is a wise idea to invest as much money as you can comfortably afford to spend on high-quality lights. The initial costs are well-worth the expense when the plant begins flowering and producing those delightful buds that you’ll indulge.

HID lighting, or High-Intensity discharge, is the industry standard lighting for marijuana cultivation. The lights combine efficiency, value, and high output that yields great results in return. Although costlier than fluorescent or incandescent lights, they produce more lighting when and where it is needed the most. To use HID lighting, a ballast and reflector or hood are also needed. The reflector/hood is used to provide air and a mounting space for the lighting, while the ballast holds the lights in place.

You’ll need two types of HID bulbs to grow marijuana indoors:

HPS: High-Pressure Sodium bulbs (HPS lamps) are best used during the flowering stage. They deliver more light per watt than the MH bulbs.

MH: Metal Halide bulbs produce a blue light that helps the plant tremendously during the vegetative stage

LED: LED grow lights are expensive, with prices as much as 10 times the cost of HID bulbs. The lights are more durable than the other options and use electricity. They also benefit the plant in that they do not produce the same intense heat as other lighting options. The result of this more intense spectrum of light is higher-quality cannabis and larger yields.

Fluorescent grow lights provide a cheaper start-up for a new grower, though they certainly fail to provide the same efficiency as the HID bulbs. In fact, fluorescent lighting produces approximately 30% less light per watt than the HID light bulb. Furthermore, several T5 bulbs are needed to attain the same output as a singular 600-watt HID bulb. The ballast, reflector, and bulbs are all included with a fluorescent grow light kit and no cooling system is required.

If you can splurge on lighting, by all means, take that opportunity. Grow lights tremendously impact the plant and how well it grows. The most distinguished of growers have attained their status in part due to the superb lighting they’ve selected. You, too, can attain such a status as long as the best grow lights are used in your operation.

Content share offered by “Sophia Walters of Plantsily.com”

The Beginners Guide on How to Grow Weed at Home in 10 Easy Steps

Getting Started Growing Cannabis Indoors

Approximately 70% of the U.S. population consumes cannabis at least on occasion, but for many people, cannabis is far more than a plant they enjoy when it’s around.

What You’ll Need to Monitor During Growing

Step 1: Choose Your Place to Grow

how to grow marijuana

A grow room isn’t needed to grow cannabis plants. Many people grow in their garage, bedroom, closets, and sometimes even the basement or a bathroom. What is important when selecting your indoor grow location is that is sizable enough to handle the plant growth, capable of holding the necessary grow lights and fans that you’ll use (we’ll discuss that momentarily,) and that the area is clean.

Starting with a small indoor grow is best for beginners. It is easier to monitor plants when there is only one or two, it is cheaper to start with a small grow operation, and helps you learn from mistakes (which you can only expect as a beginner.) Many newbies lose a plant or two during their trial and error phase, though it does open many opportunities to succeed the next time around.

There are a few important factors to consider when selecting a grow location:

Size of Plant: The small seedling doesn’t stay small for long. A marijuana plant can as much as triple in size when the flowering stage begins. The grow location should easily accommodate the plant growth.

Accessories: Grow lights, fans, and other pieces of equipment take up space in the room.

Air: Access to fresh air is another variable to consider when selecting your grow location. Fresh, outside air is best for plant growth.

Plant Care: The chosen space for growing marijuana should also be sizable enough to allow you to check on and care for the plants. Elbow room is important!

Additional criteria to keep in mind when choosing your grow spot:

Ensure the space doesn’t allow light to leak into the area
The chosen grow space must be clean and sanitary
The area should be easy-to-access
Choose an area that is inaccessible to others, i.e. nosey neighbors or those who might try to steal your plant

Concentrate on the last tip for location selection carefully. You wouldn’t believe how many otherwise successful grow operations are interrupted by nosey neighbors. You want a grow location that isn’t easily spotted by other people, even if it is visitors to your own home. The more people that see the plant, the more risks that you incur. You’re at risk of being arrested and going to jail if the police are notified of the grow operation and the plant also receives unnecessary disturbance that hinders their growth.

Content share offered by “Sophia Walters of Plantsily.com”

IRS Offers Tips about Tips

Generally, income received in the form of tips is taxable. Here’s some information to help taxpayers correctly report the income they receive as a tip:

Use the Interactive Tax Assistant. The ITA tool is a tax-law resource that asks taxpayers a series of questions and provides a response based on the answers. Taxpayers can use Is My Tip Income Taxable?.
Show All Tips on a Tax Return. Use Form 4137, Social Security and Medicare Tax on Unreported Tip Income, to report the amount of any unreported tip income to include as additional wages. This includes the value of non-cash things someone receives as a tip, such as tickets or passes to an event.
Report All Types of Tips. Taxpayers must pay tax on all tips received during the year, including those:
- Directly from customers.
- Added to credit cards.
- From a tip-splitting agreement with other employees.
Report Tips to an Employer. Employees who receive $20 or more in tips in any month must report their tips for that month to their employer by the 10th day of the next month, including cash, check and credit card tips received. The employer must withhold federal income, Social Security and Medicare taxes on the reported tips.
Keep a Daily Log of Tips. Use Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record tips. This will help report the correct amount of tips on a tax return.

Tips for Taxpayers Who Have to Amend a Tax Return

Tips for Taxpayers Who Have to Amend a Tax Return

Taxpayers who discover they made mistakes or omissions on their tax return can correct them by filing an amended tax return. Those who need to amend should remember these tips:

File using paper form. Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct the tax return. Taxpayers can’t file amended returns electronically. They can obtain the form on IRS.gov/forms. Mail the Form 1040X to the address listed in the form’s instructions.
Amend to correct errors. File an amended tax return to correct errors or make changes to an original tax return; for example, taxpayers should amend to change their filing status or to correct their income, deductions or credits.
Don’t amend for math errors, missing forms. Taxpayers generally don’t need to file an amended return to correct math errors on their original return. The IRS will automatically correct these items. In addition, taxpayers don’t need to file an amended return if they forgot to attach tax forms, such as a Form W-2 or a schedule. The IRS will mail a request to the taxpayer, if needed.
File within three-year time limit. Taxpayers usually have three years from the date they filed the original tax return to file Form 1040X to claim a refund. Taxpayers can file it within two years from the date they paid the tax, if that date is later.
Use separate forms for each year. Taxpayers who are amending more than one tax return must file a Form 1040X for each tax year. They should mail each year’s Form 1040X in separate envelopes to avoid confusion. Taxpayers should check the box for the calendar year or enter the other calendar year or fiscal year they are amending. The form’s instructions have the mailing address for the amended return.
Attach other forms with changes. Taxpayers who use other IRS forms or schedules to make changes must attach them to the Form 1040X.
Wait to file for corrected refund for tax year 2017. Taxpayers who are due refunds from their original tax year 2017 return should wait to get it before filing Form 1040X to claim an additional refund. Amended returns may take up to 16 weeks to process.
Pay additional tax. Taxpayers who will owe more tax should file Form 1040X and pay the tax as soon as possible to avoid penalties and interest. They should consider using IRS Direct Pay to pay any tax directly from a checking or savings account at no cost.
Track amended return. Generally, taxpayers can track the status of their amended tax return three weeks after they file, using ‘Where’s My Amended Return?’ It’s available in English, Spanish, Chinese, Korean, Vietnamese and Russian. The tool can track the status of an amended return for the current year and up to three previous years. Taxpayers who have filed amended returns for multiple years can check each year, one at a time.

CalCannabis: What We Do

CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA), ensures public safety and environmental protection by licensing and regulating commercial cannabis cultivators in California. CalCannabis also manages the state’s track-and-trace system, which tracks all commercial cannabis and cannabis products—from cultivation to sale. CalCannabis is organized into three branches: Licensing, Compliance and Enforcement, and Administration.

For general CalCannabis Cultivation Licensing questions, send an email to: CalCannabis@cdfa.ca.gov
For media requests, contact CDFA’s Office of Public Affairs; send an email to OfficeofPublicAffairs@cdfa.ca.gov or call (916) 654-0462
For tips on illegal cannabis cultivation operations or related complaints, call the CalCannabis toll-free hotline: 1-833-WEED-TIP

Welcome to the state of California’s Cannabis Web Portal! It is our goal to make this website a valuable resource and a one-stop shop for all things related to the state’s effort to regulate the cannabis industry.

Our daily updates feature essential information related to the state’s commercial cannabis regulations and guidelines, the licensing application process, and announcements from the state’s three cannabis licensing authorities and their business partners. The website is currently in the process of being developed, so please check back regularly for new content.

If there’s something you’re looking for and cannot find, we’re happy to look into adding new information and features as they’re needed. You can get in touch with us by submitting a website feedback form, which can be found on the ‘Contact Us’ page.

The Right to a Fair and Just Tax System: Taxpayer Bill of Rights #10

All taxpayers have the right to a fair and just tax system. This is one of 10 rights in the Taxpayer Bill of Rights, which clearly outline the fundamental rights of every taxpayer.

Here’s what the IRS wants all taxpayers to know about the right to a fair and just tax system:

Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their tax liabilities, ability to pay or ability to provide information timely.
Taxpayers can receive assistance from the Taxpayer Advocate Service if they’re experiencing financial difficulty resolving their tax issues properly and timely through normal IRS channels. Taxpayers experiencing significant hardships because of IRS action or inaction may also be eligible for assistance from TAS.
Taxpayers who cannot pay their tax debt in full and meet certain conditions can arrange a payment plan with the IRS. This means the taxpayer will pay a set amount over time, generally monthly.
Taxpayers can submit an offer in compromise asking the IRS to settle their tax debt for less than the full amount if they:
- Believe they don’t owe all or part of the tax debt
- Are unable to pay all of the tax debt within the time permitted by law to collect
- Have factors such as equity, hardship, or public policy they think the IRS should consider in determining whether to settle the liability
The IRS has a list of national and local guidelines covering the basic costs of living that it uses when considering a settlement offer reducing someone’s tax debt. IRS employees cannot use these guidelines if they would result in the taxpayer not having enough money to pay their basic living expenses. In these cases, the IRS will use the taxpayer’s actual expenses.
The IRS cannot seize all of someone’s wages to collect their unpaid tax. A portion is exempt from levy to allow the taxpayer to pay basic living expenses.
The IRS has the authority to decrease an excessive unpaid portion of any tax or liability assessed after the statutory period of limitations has expired or is erroneously or illegally assessed.
The IRS has the discretion to decrease interest on an underpayment when an IRS employee caused an unreasonable delay or error, and when no significant aspect of the error is attributed to the taxpayer.

Cannabis Cultivators, How to Determine Tax on Whole Dry Cannabis Plants Sold to Manufacturers

As a cultivator, you are responsible for the cultivation tax on all harvested cannabis entering the commercial market. Your distributor or manufacturer is required to collect the cultivation tax from you based on the category and weight of the cannabis.

The current cannabis cultivation tax categories are:

Cannabis flowers at $9.25 per dry-weight ounce that are harvested, dried, cured, and includes trimmed and untrimmed flower.
Cannabis leaves at $2.75 per dry-weight ounce, that are harvested, dried, cured, and includes all parts of the cannabis plant other than cannabis flowers.
Fresh cannabis plant at $1.29 per ounce that is weighed within two hours of harvesting and includes flowers, leaves, or a combination of flowers, leaves, stems, and stalks cut above the roots, or otherwise removed from the cannabis plant, without further processing, such as any form of drying, curing, or trimming.

Selling or transferring whole dry cannabis plants to a manufacturer
There is no cultivation tax category for a whole dry cannabis plant. When you sell or transfer the cannabis as a whole dried cannabis plant to a manufacturer, you must use the cannabis flower category for the whole dried plant at a rate of $9.25 per dry-weight ounce. Or, you may do one of the following:

Process the plant and separately weigh the dried cannabis flowers and leaves; the flowers at $9.25 per ounce, and the leaves at $2.75.
Weigh the cannabis plant within two hours of harvesting in an unprocessed state and sell or transfer the cannabis to a manufacturer as fresh cannabis plant at $1.29 per ounce.

Missed the tax-filing deadline? IRS issues tips on what to do

Missed the tax-filing deadline? IRS issues tips on what to do

While the federal income tax-filing deadline has passed for most people, there are some taxpayers still facing tax-related issues. This includes people who still haven’t filed, people who haven’t paid their taxes or those who are waiting for their tax refund.

The IRS offers these tips for handling some typical after-tax-day issues:

Didn’t file by April 18?

There is no penalty for filing a late return after the tax deadline if a refund is due. Penalties and interest only accrue on unfiled returns if taxes are not paid by April 18. The IRS provided taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax deadline. Anyone who did not file and owes tax should file a return as soon as they can and pay as much as possible to reduce penalties and interest. For those who qualify, IRS Free File is still available on IRS.gov through Oct. 15 to prepare and file returns electronically.

Filing soon is especially important because the late-filing penalty on unpaid taxes adds up quickly. Ordinarily, this penalty, also known as the failure-to-file penalty, is usually 5 percent for each month or part of a month that a return is late.

But if a return is filed more than 60 days after the April due date, the minimum penalty is either $210 or 100 percent of the unpaid tax, whichever is less. This means that if the tax due is $210 or less, the penalty is equal to the tax amount due. If the tax due is more than $210, the penalty is at least $210.

In some instances, a taxpayer filing after the deadline may qualify for penalty relief. If there is a good reason for filing late, be sure to attach an explanation to the return.

Alternatively, taxpayers who have a history of filing and paying on time often qualify for penalty relief. A taxpayer will usually qualify for this relief if they haven’t been assessed penalties for the past three years and meet other requirements. For more information, see the first-time penalty abatement page on IRS.gov.

“Where’s My Refund?”

The “Where’s My Refund?” tool is available on IRS.gov, IRS2Go and by phone at 800-829-1954. To use this tool, taxpayers need the primary Social Security number on the return, the filing status (Single, Married Filing Jointly, etc.) and the expected refund amount. The tool updates once daily, usually overnight, so checking more frequently will not yield different results.

Changing withholding?

Because of the far-reaching tax changes taking effect this year, the IRS urges all employees, including those with other sources of income, to perform a paycheck checkup now. Doing so now will help avoid an unexpected year-end tax bill and possibly a penalty. The easiest way to do that is to use the newly-revised Withholding Calculator, available on IRS.gov.

Owe taxes or need to make a payment?

Taxpayers who owe taxes can view their balance, pay with IRS Direct Pay, by debit or credit card or apply online for a payment plan, including an installment agreement. Before accessing their tax account online, users must authenticate their identity through the Secure Access process. Several other electronic payment options are available on IRS.gov/payments. They are secure and easy to use. Taxpayers paying electronically receive immediate confirmation when they submit their payment. Also, with Direct Pay and EFTPS, taxpayers can opt in to receive email notifications about their payments.

Need to fix an error on a return?

After filing their return, taxpayers may determine that they made an error or omitted something from their return. Usually an amended return is not necessary if a taxpayer makes a math error or neglects to attach a required form or schedule. Normally the IRS will correct the math error and notify the taxpayer by mail. Similarly, the agency will send a letter requesting any missing forms or schedules. Taxpayers can use the Interactive Tax Assistant — Should I File an Amended Return? — to help determine if they should file an amended return to correct an error or make other changes to their return.

Form 1040X, Amended U.S. Individual Income Tax Return, must be filed by paper and is available on IRS.gov/forms at any time. Those expecting a refund from their original return, should not file an amended return before the original return has been processed. File an amended tax return to change the filing status or to correct income, deductions or credits shown on the originally-filed tax return. Use “Where’s My Amended Return?” tool to track the status of an amended return. Normally, status updates are available starting three weeks after the amended return is filed. Allow up to 16 weeks for processing.

Need help responding to an IRS notice or letter?

An IRS notice or letter will explain the reason for the contact and give instructions on how to handle the issue. Most questions can be answered by visiting “Understanding Your Notice or IRS Letter” on IRS.gov. Taxpayers can call the phone number provided in the notice if they still have questions. If the issue can’t be resolved with the IRS through normal channels, contact the local Taxpayer Advocate Service office or call 877-777-4778.

Taxpayer Bill of Rights

Taxpayers have fundamental rights under the law. The Taxpayer Bill of Rights presents these rights in 10 categories. These rights protect taxpayers when they interact with the IRS. Publication 1, Your Rights as a Taxpayer, highlights these rights and the agency’s obligations to protect them.

Watch out for scams

The IRS will never make an initial, unsolicited contact via email, text or social media on filing, payment or refund issues. The IRS initiates most contacts through regular mail delivered by the United States Postal Service. Any email that appears to be from the IRS about a refund or tax problem is probably an attempt by scammers to steal personal or financial information. Forward the e-mail to phishing@irs.gov.

CALIFORNIA TEMPORARY MARIJUANA LICENSES may be extended for 90-day

Per the California Bureau of Cannabis Control, temporary licenses may be extended for 90-day periods if a complete annual license application is submitted before the expiration date.

“Temporary licenses may be extended for 90-day periods if the licensee submits a complete annual license application before the expiration date.”

“To submit a completed annual license application, you must submit documents as requested for each component of the application. After the Bureau receives your completed application, the Bureau may extend your temporary license.”

No extensions will be granted to temporary licensees who do not submit an annual license application prior to the expiration date on their license. If the temporary license expires, the business will be required to cease operations until an annual license has been issued, as operating a commercial cannabis business without an active state license is a violation of the law.

Archives for April 2018

Affordable Care Act: What Employers with Fewer than 50 Employees Need to Know

How to Grow Weed at Home: Choose Your Light

Getting Started Growing Cannabis Indoors

What You’ll Need to Monitor During Growing

Step 2: Choose Your Light

The Beginners Guide on How to Grow Weed at Home in 10 Easy Steps

Getting Started Growing Cannabis Indoors

What You’ll Need to Monitor During Growing

Step 1: Choose Your Place to Grow

IRS Offers Tips about Tips

IRS Offers Tips about Tips

Tips for Taxpayers Who Have to Amend a Tax Return

CalCannabis: What We Do

CalCannabis: What We Do

The Right to a Fair and Just Tax System: Taxpayer Bill of Rights #10

The Right to a Fair and Just Tax System: Taxpayer Bill of Rights #10

Cannabis Cultivators, How to Determine Tax on Whole Dry Cannabis Plants Sold to Manufacturers

Cannabis Cultivators, How to Determine Tax on Whole Dry Cannabis Plants Sold to Manufacturers

Missed the tax-filing deadline? IRS issues tips on what to do

CALIFORNIA TEMPORARY MARIJUANA LICENSES may be extended for 90-day

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