SACRAMENTO – The Bureau of Cannabis Control (Bureau) and the Department of Consumer Affairs’ Division of Investigation-Cannabis Enforcement Unit (DOI-CEU), in coordination with the Los Angeles Police Department (LAPD), today announced enforcement action on an unlicensed cannabis retailer operating within the city of Los Angeles. [Read more…]
Archives for October 2018
Get Ready for Taxes:
Learn how the new tax law affects tax returns next year
WASHINGTON –The Internal Revenue Service today advised taxpayers about steps they can take now to ensure smooth processing of their 2018 tax return and avoid surprises when they file next year.
This is the first in a series of reminders to help taxpayers get ready for the upcoming tax filing season. Additionally, the IRS has recently updated a special page on its website with steps to take now for the 2019 tax filing season.
New IRS Publication 5307 helps individuals understand Tax Cuts and Jobs Act
Major tax reform that affects both individuals and businesses was approved by Congress and signed by the President on Dec. 22, 2017. It’s commonly referred to as the Tax Cuts and Jobs Act, or TCJA, or tax reform. Throughout 2018, the IRS has been working closely with partners in the tax return preparation and tax software industries to implement the new law and ensure taxpayers can count on the IRS, tax professionals and tax software programs when it’s time to file their returns. Now there is a new publication that will help taxpayers learn how tax reform affects their taxes. IRS Publication 5307, Tax Reform Basics for Individuals and Families, is now available on IRS.gov/getready. While the Tax Cuts and Jobs Act law includes tax changes for individuals and businesses, this publication breaks down what’s new for the 2018 federal tax return individual taxpayers will be filing in 2019.
This new publication provides important information about:
- increasing the standard deduction,
- suspending personal exemptions,
- increasing the child tax credit,
- adding a new credit for other dependents and
- limiting or discontinuing certain deductions.
Taxpayers can access Publication 5307 at IRS.gov/getready, along with other important information about steps taxpayers can take now to ensure smooth processing of their 2018 tax return and avoid surprises when they file next year.
Because of the many changes in the tax law, refunds may be different than prior years for some taxpayers. Some may even owe an unexpected tax bill when they file their 2018 tax return next year. To avoid these kind of surprises, taxpayers should perform a Paycheck Checkup to help determine if they need to adjust their withholding or make estimated or additional tax payments now.
The IRS urges all taxpayers to file a complete and accurate tax return by making sure they have all the needed documents before they file their return, including their 2017 tax return. This includes year-end Forms W-2 from employers, Forms 1099 from banks and other payers, and Forms 1095-A from the Marketplace for those claiming the Premium Tax Credit. Confirm that each employer, bank or other payer has a current mailing address for you. Typically, these forms start arriving by mail in January. Check them over carefully, and if any of the information shown is inaccurate, contact the payer right away for a correction.
To avoid refund delays, taxpayers should avoid using incomplete records and instead wait to file until they have gathered all year-end income documentation. This will minimize the chances they will need to file an amended return later which is extra work for taxpayers and can take up to 16 weeks to process once the IRS receives it.
Taxpayers should keep a copy of any filed tax return and all supporting documents for a minimum of three years. Having your prior year return will make it easier to fill out your 2018 tax return next year. In addition, taxpayers using a software product for the first time may need the Adjusted Gross Income (AGI) amount from their 2017 return to properly e-file their 2018 return. Learn more about verifying identity and electronically signing a return at Validating Your Electronically Filed Tax Return.
For a faster refund, choose e-file
Electronically filing a tax return is the most accurate way to prepare and file. Errors delay refunds and the easiest way to avoid them is to e-file. Using tax preparation software is the best and simplest way to file a complete and accurate tax return. The software guides taxpayers through the process and does all the math. The IRS is working with the tax community to incorporate the tax law changes and form updates. Nearly 90 percent of all returns are electronically filed.
There are several e-file options:
- IRS Free File,
- Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs,
- Commercial tax preparation software, or
- Tax professional.
Use Direct Deposit
Combining Direct Deposit with electronic filing is the fastest way for a taxpayer to get their refund. With Direct Deposit, a refund goes directly into a taxpayer’s bank account. There’s no reason to worry about a lost, stolen or undeliverable refund check. This is the same electronic transfer system now used to deposit nearly 98 percent of all Social Security and Veterans Affairs benefits. Nearly four out of five federal tax refunds are Direct Deposited.
Direct Deposit also saves taxpayer dollars. It costs the nation’s taxpayers more than $1 for every paper refund check issued but only a dime for each Direct Deposit.
Renew expiring ITINs
Some people with an Individual Taxpayer Identification Number (ITIN) may need to renew it before the end of the year. Doing so promptly will avoid a refund delay and possible loss of key tax benefits.
Any ITIN not used on a federal tax return in the past three years will expire on Dec. 31, 2018. Similarly, any ITIN with middle digits 73, 74, 75, 76, 77, 81 or 82 will also expire at the end of the year. Anyone with an expiring ITIN who plans to file a return in 2019 will need to renew it using Form W-7.
Once a completed form is filed, it typically takes about seven weeks to receive an ITIN assignment letter from the IRS. But it can take longer — nine to 11 weeks — if an applicant waits until the peak of the filing season to submit this form or sends it from overseas. Taxpayers should take action now to avoid delays.
Taxpayers who fail to renew an ITIN before filing a tax return next year could face a delayed refund and may be ineligible for certain tax credits. For more information, visit the ITIN information page on IRS.gov.
Refunds held for those claiming EITC or ACTC until mid-February
By law, the IRS cannot issue refunds for people claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. The law requires the IRS to hold the entire refund — even the portion not associated with EITC or ACTC. This law change, which took effect at the beginning of 2017, helps ensure that taxpayers receive the refund they’re due by giving the IRS more time to detect and prevent fraud.
As always, the IRS cautions taxpayers not to rely on getting a refund by a certain date, especially when making major purchases or paying bills. Be aware that some returns may require additional review for a variety of reasons and may take longer. For example, the IRS, along with its partners in the state’s and the nation’s tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud.
Due to the large number of applications being submitted for temporary cannabis cultivation licenses, the California Department of Food and Agriculture (CDFA) hereby notifies prospective applicants that any application for a temporary license received after December 1, 2018, may NOT be processed in time for us to issue a temporary license before January 1, 2019. After December 31, 2018, the authority for CDFA to issue temporary licenses expires. To provide sufficient processing time, please submit your temporary application to CDFA’s CalCannabis Cultivation Licensing Division by December 1, 2018.
FOR EXTENSIONS OF TEMPORARY LICENSES PRIOR TO DECEMBER 31, 2018
To receive an extension of your existing temporary cannabis cultivation license, an application for an annual license must be submitted and the application fees paid prior to December 31, 2018. After that date, the authority for CDFA to extend a temporary license expires. If you do not have all the required documentation for an annual license application or are still in the permitting process with your county or city, please provide an explanation for the absence of any required item and submit the missing information as soon as it is obtained.
Submitting an annual application will allow CDFA to determine whether you qualify for an annual license or a provisional license in 2019.
Pursuant to Business and Professions Code section 26038, a person engaging in commercial cannabis cultivation without a license issued by CDFA shall be subject to civil penalties, and the cannabis may be ordered to be destroyed.
If you have questions about temporary, provisional, or annual commercial cannabis cultivation licenses, call us toll-free at 1-833-CALGROW (1-833-225-4769) or send us an email at: firstname.lastname@example.org. Please visit our website at calcannabis.cdfa.ca.gov for step-by-step guides and videos on our cultivation licensing application process and information on the California Cannabis Track-and-Trace system.
If you are in in need of Cannabis Compliant Accounting & Tax, email The NestEggg Group.
Money is the fuel that makes a business run. It is expected to pay rates including your own, finance advertising projects to secure and hold new clients, put resources into gear and offices, pay lease, supplies and numerous more everyday exercises. Most money related specialists prescribe three to a half year of working costs, however utilizing this for each business in each circumstance is deluding.
To decide how much money you require, you should take a gander at the accompanying key territories.
The amount Cash Have You Been Using?
In case you’re a built up entrepreneur, take a gander at your month to month income report (or go to the following section in case you’re a start-up). This report will give a recorded and occasional point of view. Note the money got from deals and the money spent. The net of these two is frequently alluded to as the “net consume rate.” For instance, in the event that you have $50,000 in deals and $30,000 in costs, at that point your net consume is +$20,000
Your “gross consume rate” just considers money uses; in our model, that is $30,000 and is the more preservationist sum, since it doesn’t expect any deals are made. Recorded spending designs are a decent beginning stage in considering future spending designs.
The amount Cash Do You Plan to Use?
Take a gander at the month to month income projection covering the following 12 to 15 months. In case you’re a set up proprietor, you can discover this data in your month to month spending plan, or if don’t have a financial plan, from a money related conjecture made for this reason. For new companies, you’ll discover your answer in the money related segment of your strategy for success. As you did with genuine trade uses out the previous section take a gander at the business (trade out) and uses (money out) independently.
Be moderate in your conjecture as real outcomes regularly contrast from what’s expressed in your marketable strategy. Also, remember that costs are typically more unsurprising than income on the grounds that many are moderately settled, for example, finance and lease (frequently the two biggest cost classifications). What’s more, for new businesses, separate the one-time forthright costs required before you can open your entryways from your progressing working costs.
For an independent company, the past isn’t really the best indicator of future needs. You have to think about the phase of your business in your gauges.
What Is the Stage of Your Business?
Is it accurate to say that you are in start-up, first year of task, keeping up a continuous business essentially consistent whirlpool, or do you have plans to develop or make substantial buys? Every one of these will affect the money figure talked about above. While a built up business may have great benchmarks, a start-up has couple of benchmarks and the most vulnerability, and along these lines ought to be more moderate when setting income needs.
In developing organizations, accounts receivables, and perhaps stock, grow to help the expanded deals. Be that as it may, usually neglected that you require money to fuel this development—you should burn through cash to create the deal before the client dispatches money.
To what extent It Will Take to Get More Cash?
Presently you know your money requirements for the following 12-15 months. The following thought is to what extent it will take to get more money if and when it is required. In case you’re subsidizing the business from your own assets, the time is short. Getting the required finances likely means composing a check from a financial balance or offering a security from a venture account—perhaps three to five days until the point when the money is accessible to utilize.
Be that as it may, in the event that you require a bank credit to get money, it may take two months—multi month to discover a bank willing to make the advance and one more month to do the printed material. This choice accept you have a strategy for success in nearly prepared condition and have kept up great relations with your bank on the off chance that you have a built up business or on your own record in case you’re in start-up mode.
Raising assets from blessed messenger financial specialists broadens the time significantly. In the event that you go this course, depend on six to nine months to set up the strategy for success/financial specialist pitch, make introductions to a few blessed messenger gatherings to discover one that is intrigued and a solid match, and pause while the holy messenger amass conducts its due persistence.
When you know how much money you’ve been utilizing, the amount you intend to utilize, and to what extent it will take to get it, you can decide how much money you have to keep in the business. For instance, on the off chance that you intend to utilize a bank advance to subsidize your money needs and you intend to burn through $50,000 per month, at that point you ought to presumably keep $100,000 in your ledger—in the event that you have certain business income happening in these two months you can lessen the required trade out the bank by a like sum. Be that as it may, on the off chance that you plan on utilizing holy messenger subsidizing then you should need to have $300,000 in your financial balance.
Are There Other Cash Sources?
Before moving toward a bank or holy messenger gathering, consider some other subsidizing sources. For buys, approach the seller for credit terms or a more drawn out period in which to pay. For deals, request that clients pay you in shorter time span and offer a rebate as a motivating force to pay prior. Other money sources incorporate expanding your charge card adjusts, taking out a home value credit, obtaining from family and companions, taking advantage of reserve funds and retirement accounts, renting rather and buying hardware—the rundown goes on. It’s additionally great practice to have a bank credit extension as a security net—one that can be dunked into when required.
At the point when Is the Best Time to Seek More Cash?
A typical maxim is that the best time to acquire reserves is the point at which you needn’t bother with them. Sounds nonsensical, yet amid these occasions you aren’t urgent to take the main offer made. You have room schedule-wise to search for the best source, with the best terms, and you can consult from a place of quality.
Excessively or Too Little Cash
There are numerous arrangements of normal purposes behind business disappointments. The two things as often as possible close to the best are undercapitalization (insufficient money) and overcapitalization (an excessive amount of money). The primary reason is entirely straightforward. In any case, organizations can likewise cause harm when they have excessively money, as they frequently embrace ventures, procure staff, purchase hardware, move to bigger workplaces, and other such costly activities, which bring about progressing suggestions like settled expenses.
Frequently these choices are not made with a similar arranging thoroughness when money was more tightly. On the off chance that your organization is blessed to have “abundance” money past the guage needs, at that point make a conveyance to the proprietors instead of settle on a choice that may have expansive impacts.
Know how much money you’ve spent and the amount you intend to spend.
Figure out where you will acquire money if and when it is required, and to what extent it will take to get it.
Match exercises 1 and 2 to decide how much money you have to hold.
Comprehend the phase of your business to decide whether changes to authentic spending designs are required while thinking about conjectures.
Be preservationist in your assessments, infrequently do genuine outcomes coordinate figures.
Look for trade when you are out a situation to investigate alternatives and consult from quality.
Refresh your strategy for success, spending plan, and budgetary conjectures so they give you great data now and are accessible if and when they are required.
Research financing hotspots for sometime later.
Go to your bank and investigate getting a credit extension so you have a security net if and when it is required.
On October 19th, the California Bureau of Cannabis Control, California Department of Public Health, and California Department of Food and Agriculture issued 15-day notices of modification to the texts of their respective proposed regulations. The California Cannabis Portal has published links to each notice and the modified texts of the proposed regulations. For each set, the respective Department will accept written comments by November 5, 2018.
The amended proposed permanent cannabis regulations are now in a 15-day notice-and-comment period for each California agency—the Bureau of Cannabis Control (“BCC”), Department of Public Health (“DPH”), and Department of Food and Agriculture (“DFA”). The next round of written public comments is due to each agency by November 5, 2018. It’s important then for California cannabis businesses to get a handle on the proposed regulations as quickly as possible to determine whether to provide written comments since some impactful changes are coming.
Here are the key proposed changes from the BCC regulations:
Intellectual Property Licenses: The BCC’s regulations pose a threat to cannabis intellectual property licensing in California. Our California cannabis lawyers are regularly involved in intellectual property licensing deals and we think it’s critical for cannabis businesses to speak up in opposition to this proposed rule. California would be the only state in the cannabis union to bar third-party IP-licensing deals for cannabis licensees, which will certainly undercut the business growth of a good amount of operators if this rule passes.
“Owners”: The BCC modified the definition of “owner” (as well as “financial interest holder”; see below), which now includes “[a]n individual entitled to a share of at least 20 percent of the profits of the commercial cannabis business.” This is much broader than the existing 20 percent aggregate ownership threshold (which also still stands). To illustrate, the current ownership threshold definition expressly states that it does not apply where that interest holder holds “solely a security, lien, or encumbrance.” This new addition to the rules seems to capture a mere security holder—so long as that security holder is entitled to 20 percent of the profits.
The BCC also expanded upon the form of “ownership” that requires disclosure based on assumption of responsibility for the license, by specifying certain kinds of persons or entities who qualify (note that this list is not exhaustive or complete, so it likely will be read even more broadly), as:
- Persons who manage or direct the licensed business in exchange for a portion of the profits. Note, there is no minimum threshold for profit entitlements here, so this could include persons who expect less than 20 percent of the profits.
- Persons who assume responsibility for the licensed business’ debts. Here too, there is no threshold for debt assumption.
- Persons who determine how “a portion” of the licensed business is run. This includes things such as “non-plant-touching portions of the commercial cannabis business such as branding or marketing”, but it too could include much more broad categories of business operations.
- Persons who determine what cannabis goods will be cultivated, manufactured, distributed, purchased, or sold.
Notably too, these modifications now take the position that if an “owner” is an entity, all entities and individuals with a financial interest in that entity must be disclosed to the BCC and may be considered owners of the commercial cannabis business. The BCC emphasized that each entity and person in the corporate chain must be disclosed until the applicant can identify actual persons.
The takeaway from these changes is that the BCC now wants full identification of any person who has anything to do with an applicant entity—even if that person simply owns a company multiple steps away in a corporate chain. That is not dissimilar to what our cannabis business lawyers have seen in Oregon and Washington.
“Financial Interest Holder”: Like before, the BCC considers a financial interest to include an agreement to receive a portion of the profits of a licensed entity. Now, however, the BCC gives a number of examples of what qualifies as such an agreement:
- An employee who enters into a profit-share plan with a licensee.
- A landlord who enters into a lease agreement with a licensee for a share of the profits.
- A consultant who provides services to a licensee for a share of the profits.
- A person who acts as an agent, such as an accountant or attorney, for the licensee for a share of the profits.
- A broker who engages in activities for the licensee for a share of the profits.
- A salesperson who earns a commission.
The BCC will now also require the identification of all persons in the corporate hierarchy for interest holders, similar to the rules regarding owners. Meaning, if a financial interest holder is an entity, everyone in that entity is getting disclosed .
Annual License Fees: The BCC scrapped its previous test for determining the amount of appropriate fees for the annual licenses—estimating the maximum dollar value of planned operations—and now has created a new formula: “To determine the appropriate license fee due, the applicant or licensee shall first estimate the gross revenue for the 12-month license period of the license.”
Changes in Ownership: The BCC is also expanding its prohibition on changes of ownership over a licensed entity. If any new person is added as an “owner” by virtue of a change in ownership of a licensed entity, that person will need to provide the vast categories of information required by section 5002(c)(20) within 14 calendar days of the transfer. This will obviously have an impact on California cannabis M&A. The business can still operate pending the change so long as one previous owner remains on; otherwise, operations will need to cease pending the BCC’s review of the new owner. The BCC is also now requiring 14 calendar days’ notification of changes in any of the following:
- Any changes to the contact information that was provided to the BCC in the original application;
- Any change in legal name, business name, trade name, or fictitious business name of the licensee;
- Any change to financial information, including funds, loans, investments, and gifts required in the original application;
- Any change in the required bond; or
- Any change or lapse in a distributor’s insurance coverage.
Annual License Applications and Requirements: As to annual licenses, the BCC made tweaks to the information that it will require for submission, which signals its desire to place more scrutiny on applicants and ensure compliance with California law. We won’t explain every change here, but here are the essential ones:
- First, the BCC changed the requirement to provide it with “The business-formation documents” for the licenses business to “All business-formation documents”.
- Second, the BCC is requiring that applicants provide it with state employer identification numbers (“SEIN”), which the BCC explains in its notice of modification as being “necessary to ensure that all applicants that are required to obtain such a number have obtained it and are thus, in compliance with California law.”
- Finally, licensees with more than one employee must attest that within one year of receiving their license, the licensee will have employees who have undergone certain Cal-OSHA safety training.
The BCC is also beefing up its requirements for renewal of licenses to require documentation of any change to any item listed in the original application. So, chances are that if a cannabis business obtains an annual license before these proposed changes become effective (and assuming they do), that business will need to provide these additional disclosures later.
Premises: There are a number of modifications to the proposed rules concerning licensed premises, but here are the highlights:
- While it’s been routine for multiple licensees to operate on the same premises, the proposed modifications now expressly state that they do not “prohibit two or more licensed premises from occupying separate portions of the same parcel of land or sharing common use areas, such as a bathroom, breakroom, hallway, or building entrance.”
- The premises must consist of permanent structures—shipping containers, modular buildings, or anything on wheels are a no-go—that are affixed to the ground and not capable of movement.
- There is now a form (BCC-LIC-027) to submit to the BCC to request to make a physical change or alteration to the premises.
Marketing and Promotions: Licensees will be prohibited from selling or transporting goods that are identified as any kind of alcoholic product (and they cannot refer to anything as containing or being an alcoholic product). There are also now definitions for promotional goods and branded goods. If licensees want to sell branded goods that are not listed in the definition, they will need to seek BCC approval first. The proposed modifications also clarify that licensees can provide customers with promotional non-cannabis goods—and it looks like these goods could be provided at the premises or via delivery, too.
Packaging: The proposed modifications set up a time tier for cannabis packaging, whereby until January 1, 2020, cannabis packaging needs to be tamper-evident, in some cases re-sealable, and must not look like packaging that is marketed to children. Until January 1, 2020, retailers and microbusinesses can satisfy this rule by providing opaque exit packaging that meets the foregoing standards.
Testing and Quality Assurance: The proposed regulations include prohibitions on re-sampling previously tested batches, new requirements for remediation plans for failed batches, and new requirements for quality assurance testing for the level of THC, CBD, and terpenoids, among other things. If goods have undergone testing and haven’t been sold in 12 months, they now have to be destroyed.
Retailer Packaging: Similar to the revised distribution rules, the proposed modifications set up a timetable that requires tamper-evident packaging until January 1, 2020, and re-sealable, tamper evident, and child-resistant packaging thereafter. There are opposite requirements for retailer exit packaging—it must be child-resistant, re-sealable and opaque until 2020, and then just opaque thereafter.
Deliveries: The rules now more heavily regulate a retailer’s use of tech platforms for delivery (i.e., the platform can’t share profits and can’t be the one doing the delivery, presumably unless it too is licensed). Delivery vehicles cannot contain any exterior markings that indicate that they are delivering cannabis goods. Delivery vehicles may now carry only $5,000 in cannabis goods at once. And the biggest change of all, per the modified section 5416(d), deliveries can be made into any jurisdiction in the state, so long as they comply with the BCC’s delivery rules. Currently, localities can and do prohibit deliveries from other jurisdictions. The BCC’s proposed regulations, however, now open the floodgates to previously “dark” delivery jurisdictions.
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Eligible taxpayers may now deduct up to 20 percent of certain business income from domestic businesses operated as sole proprietorships or through partnerships, S corporations, trusts, and estates. The deduction may also be claimed on certain dividends. Eligible taxpayers can claim the deduction for the first time on the 2018 federal income tax return they file in 2019. This provision is the result of tax reform legislation passed in December 2017.
Here are some things business owners should know about this deduction:
- The deduction applies to qualified:
– Business income
– Real estate investment trust dividends
– Publicly traded partnership income
- Qualified business income is the net amount of qualified items of income, gain, deduction and loss connected to a qualified U.S. trade or business. Only items included in taxable income are counted.
- The deduction is available to eligible taxpayers, whether they itemize their deductions on Schedule A or take the standard deduction.
- The deduction is generally equal to the lesser of these two amounts:
– Twenty percent of qualified business income plus 20 percent of qualified real estate investment trust dividends and qualified publicly traded partnership income.
– Twenty percent of taxable income computed before the qualified business income deduction minus net capital gains.
- For taxpayers with taxable income computed before the qualified business income deduction that exceeds $315,000 for a married couple filing a joint return, or $157,500 for all other taxpayers, the deduction may be subject to additional limitations or exceptions. These are based on the type of trade or business, the taxpayer’s taxable income, the amount of W-2 wages paid by the qualified trade or business, and the unadjusted basis immediately after acquisition of qualified property held by the trade or business.
- Income earned through a C corporation or by providing services as an employee is not eligible for the deduction.
Taxpayers may rely on the rules in the proposed regulations until final regulations appear in the Federal Register
On May 2, 2018, the Washington State Liquor and Cannabis Board (LCB) adopted new rules regarding packaging and labeling of marijuana infused products. In order to lessen the impact to licensees, a phase-in approach was used with the adoption of Board Interim Policy BIP-05-2018 giving licensees until January 1, 2019 to become compliant. Due to feedback received about both the January 1, 2019 deadline and the marijuana infused edible product review, staff will bring a proposal before the Board to amend the interim policy date for full compliance to June 1, 2019. The Board will review the proposal at their October 31, 2018 meeting.
Some industry members expressed concerns following a marijuana-infused candy presentation at the regularly scheduled Board meeting. A message was sent soon after clarifying the agency’s process for product and label review. Since the announcement, agency staff have had additional conversations with industry members and industry trade organizations that requested the LCB halt its product review and allow time for stakeholders to be heard. Specifically, a coalition of CORE, the Cannabis Alliance and Washington Cannabusiness Association together formally wrote the LCB requesting the same.
The agency agreed to halt the product review for 30 days and announced during that time will accept input from licensees and trade organizations regarding alternatives for the agency to consider. Coalition members have indicated that they will be meeting later this month to discuss their proposal(s) and will present them to the agency. We will communicate the outcome of these discussions by Nov. 12, 2018.
The LCB will continue to accept label, package and product submissions prior to the newly proposed deadline. If you have infused edible products that are not presently being discussed for compliance, please submit them to firstname.lastname@example.org using the new requirements.
After a disaster, taxpayers might need to reconstruct records. This could help them prove their losses, which may be essential for tax purposes, getting federal assistance or insurance reimbursement.
Here are several things taxpayers can do to help reconstruct or get copies of specific types of records after a disaster:
Tax Return Transcripts
- Taxpayers can get free tax return transcripts by using the Get Transcript tool on IRS.gov. They can also call 800-908-9946 to order them by phone.
Proof of loss
- To establish the extent of the damage, taxpayers should take photographs or videos of affected property as soon as possible after the disaster.
- Taxpayers can look on their mobile phone for pictures that show the property before the disaster damaged it.
- If a taxpayer doesn’t have photographs or videos of their property, a simple method to help them remember what items they lost is to sketch pictures of each room that was affected.
- Taxpayers can support the valuation of property with photographs, videos, canceled checks, receipts, or other evidence.
- If they bought items using a credit card or debit card, they should gather past statements from their credit card company or bank. If the taxpayer didn’t keep these records or they were destroyed, statements may be available online or they can contact their financial institution.
Records about property
- Taxpayers can contact the title company, escrow company, or bank that handled the purchase of their home to get copies of appropriate documents.
- Taxpayers who made improvements to their home should contact the contractors who did the work to see if records are available. If possible, the home owner should get statements from the contractors to verify the work and cost. They can also get written accounts from friends and relatives who saw the house before and after any improvements.
- For inherited property, taxpayers can check court records for probate values. If a trust or estate existed, the taxpayer can contact the attorney who handled the trust.
- When no other records are available, taxpayers can check the county assessor’s office for old records that might address the value of the property.
- There are several resources that can help someone determine the current fair-market value of most cars on the road. These resources are all available online and at most libraries. They include Kelley’s Blue Book, the National Automobile Dealers Association, and Edmunds.
State Cannabis Licensing Authorities Announce Changes to Proposed Cannabis Regulations
SACRAMENTO – California’s three state cannabis licensing authorities today announced changes to the proposed cannabis regulations published to the California Regulatory Notice Register on July 13, 2018. These proposed changes mark the next step in the formal rulemaking process toward adopting non-emergency regulations and the beginning of a 15-day public comment period related to the proposed changes.
The changes to each licensing authority’s proposed non-emergency regulations and rulemaking documents have been posted to California’s Cannabis Portal and may be viewed at the following link: https://cannabis.ca.gov/cannabis-regulations/
“We received valuable feedback from industry stakeholders and the public over the duration of the 45-day comment period,” said Bureau of Cannabis Control Chief Lori Ajax. “These changes we’ve proposed further clarify the requirements for cannabis businesses while protecting overall public health and safety.”
PUBLIC COMMENT: There will be a 15-day public comment period on the proposed changes, which starts today and concludes Monday, November 5, 2018, at 5 p.m. Please note that only public comments addressing the newly proposed changes will be considered.
The three licensing authorities will review each timely comment received and will respond to all comments in documents filed during the final stages of the rulemaking process. Comments may be submitted in writing to each licensing authority through email or physical mail. No public comments will be accepted by phone.
The current emergency regulations, adopted by the Bureau of Cannabis Control, California Department of Public Health and California Department of Food and Agriculture in December 2017 and readopted in June 2018, were originally issued through the emergency rulemaking process to meet the legislative mandate to open California’s regulated cannabis market on January 1, 2018. These emergency regulations will remain in effect until the non-emergency rulemaking process is complete.
On June 27, 2017, the legislature passed and Governor Brown signed into law the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) which provided one regulatory framework for both medicinal and adult-use commercial cannabis activity within the state. The state cannabis authorities adopted emergency regulations in December 2017 for initial implementation of the provisions of MAUCRSA and are now using the regular rulemaking process to adopt permanent regulations.
The IRS encourages everyone to use the Withholding Calculator to do a Paycheck Checkup, which is even more important this year because of tax law changes. Taxpayers who haven’t yet done this can follow the steps below for using the calculator.
Results from the calculator will include a recommendation of whether they should consider submitting a new Form W-4, Employee’s Withholding Allowance Certificate, to their employers. Before beginning, taxpayers should have a copy of their most recent pay stub and tax return.
First, taxpayers should go to the main Withholding Calculator page on IRS.gov. Carefully read all information and click the blue Withholding Calculator button.
Use the buttons at the bottom of each page to navigate through the calculator. The buttons allow users to continue inputting their information, reset the information on that page, or start over from the beginning.
Input general tax situation information, including:
- Filing status.
- Whether anyone can claim the users as dependents.
- Total number of jobs held during the year.
- Contributions to a tax-deferred retirement, cafeteria or other pre-tax plan.
- Scholarships or fellowship grants received that are included in gross income.
- Number of dependents.
Input information about credits, including:
- Child and dependent care credit.
- Child tax credit.
- Earned income tax credit.
Enter the total estimated taxable income expected during the year. Amounts the user will enter include wages, bonuses, military retirement, taxable pensions, and unemployment compensation. Users should enter a “0” on lines asking for amounts that don’t apply to them.
Enter an estimate of adjustments to income, including deductible IRA contributions and education loan interest.
Indicate standard deduction or itemized deductions. Users who plan to itemize will enter estimates of these deductions.
Print out the summary of results. The calculator will provide a summary of the taxpayer’s information. Taxpayers use the results to determine if they need to complete a new Form W-4, which they submit to their employer.