Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5031. Age Restriction
Employees or persons retained by a licensee to work within or on a licensed premises or to
handle cannabis goods shall be at least 21 years of age.
Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business
and Professions Code.
Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5029. Transition to Regulated Commercial Cannabis Market
(a) Beginning January 1, 2018, licensees shall not transport or sell any edible cannabis product
that exceeds 10 milligrams of tetrahydrocannabinol (THC) per serving.
(b) Notwithstanding any other regulation in this division, beginning January 1, 2018, and before
July 1, 2018, licensees may do all of the following:
(1) Cannabis goods that are not in child-resistant packaging may be sold if they are placed into
child-resistant packaging by the retailer at the time of sale.
(2) Non-edible cannabis products that do not meet the THC limits per package specified by the
State Department of Public Health in regulation may be transported and sold.
(3) A distributor may transport and an M-designated retailer may sell medicinal edible cannabis
products that contain 10 milligrams of THC or less per serving regardless of the THC amount in
the package.
(4) Cannabis goods that do not meet the labeling requirements prescribed by the Act or the State
Department of Public Health in regulation may be transported and sold if a sticker with the
applicable warning statement under Business and Professions Code section 26120, subdivision
(c)(1)(A) or (c)(1)(B), is affixed to the cannabis goods prior to sale by the retailer.
(5) Cannabis goods held in inventory at the time of licensure that have not undergone laboratory
testing may be transported and sold if a label stating that the cannabis goods have not been tested
as required under Business and Professions Code section 26070(l) is affixed to each package
containing the cannabis goods prior to sale by the retailer.
(6) Dried flower held in inventory by a retailer at the time of licensure that is not packaged may
be packaged by the retailer into individual packages for sale.
(7) Cannabis products held in inventory by a retailer that do not meet the requirements set by the
State Department of Public Health, pursuant to Business and Professions Code sections 26130
and 26131, for ingredients or appearance may be sold by the retailer.
IRS Tax Tip: Taxpayers can now get tax tips and helpful news from the IRS on Instagram.
The agency just debuted it’s official Instagram account, IRSNews, which users can access at www.instagram.com/irsnews or on their smartphone using the Instagram app.
The IRS will use its new Instagram account it to:
The IRS will use Instagram along with several other social media tools to communicate with taxpayers:
The IRS also has their own app, IRS2Go. Taxpayers can use this free mobile app to check their refund status, pay taxes, find free tax help, watch IRS YouTube videos and get IRS Tax Tips by email. Like Instagram, the IRS2Go app is available from the Google Play Store for Android devices, or from the Apple App Store for Apple devices. IRS2Go is available in both English and Spanish.
Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5030. Licensee’s Responsibility for Acts of Employees and Agents
In construing and enforcing the provisions of the Act and the regulations in this division, the act,
omission, or failure of an agent, officer, representative, or other person acting for or employed by
a licensee, within the scope of his or her employment or office, shall in every case be deemed the
act, omission, or failure of the licensee.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26031 and
26110, Business and Professions Code.
IRS takes additional steps to protect taxpayer data; partners with tax professionals
WASHINGTON – After working with the tax preparation community, the Internal Revenue Service today announced it would stop its tax transcript faxing service as of Feb. 4, 2019, and offer a more secure alternative to taxpayers and tax professionals.
The IRS worked with the tax preparation community to reach agreement on an alternative that will meet tax practitioners’ needs in e-filing individual tax returns while also enhancing safeguards for taxpayer data.
The IRS continues to look for way to better protect taxpayer information and tax transcripts, which are summaries of individuals’ tax returns. Cybercriminals who obtain tax transcripts use them to file fraudulent returns that are difficult to detect because they closely mirror a legitimate tax return.
The halt to faxing transcripts is another step taken by the IRS to protect taxpayer data. In September 2018, the IRS began to mask personally identifiable information for every individual and entity listed on the transcript. See New Tax Transcript and Customer File Number.
All financial entries on the transcript remain visible. However, tax practitioners who work to bring taxpayers into compliance by filing prior-year tax returns may need access to employer information that taxpayers no longer have. In those cases, tax practitioners may request an unmasked Wage and Income Transcript. The Wage and Income Transcript can be used for current year tax preparation but it generally is not available until mid-year.
Alternatives for taxpayers for return preparation
The IRS has multiple ways taxpayers can obtain a copy of their tax transcript other than faxing. Individuals may still call the IRS to obtain a masked tax account transcript and one will be mailed to the last address of record.
For faster service, taxpayers may go to IRS.gov for Get Transcript Online, verify their identities and create a account. They can then view or download a copy of their tax transcript immediately. Or they can go to IRS.gov for Get Transcript by Mail and request a transcript be mailed to their last address of record. Taxpayers also may call 800-908-9946 for automated service to order a transcript by mail.
Alternatives for tax professionals for return preparation
Starting Jan. 7, 2019, tax professionals who contact the Practitioner Priority Service number may, with proper authorization, have an unmasked Wage and Income Transcript deposited in their e-Services secure mailbox.
Tax practitioners must meet certain requirements in order to use the secure mailbox option. Those requirements are outlined in Fact Sheet 2018-20, Steps for Tax Professionals to Obtain Wage and Income Transcripts Needed for Tax Preparation. Practitioners also should review Fact Sheet 2018-21, IRS Offers Tips to Tax Professionals to Reduce CAF Number Errors, Better Protect Data from Cyberthieves.
The Wage and Income Transcript provides information limited to the Forms W-2, 1099 and other income documents sent to the IRS. It does not include general tax transcript information. The Wage and Income Transcript will give tax practitioners the employer information needed to file tax returns electronically.
Tax professionals also may request that an unmasked Wage and Income Transcript be sent to the client’s address of record. Alternatively, taxpayers may request an unmasked transcript for tax preparation, and it will be mailed to their address of record.
Faxing and business tax transcripts
The Feb. 4, 2019, discontinuation of the faxing service also applies to business tax transcripts as well as individual tax transcripts. However, business tax transcripts are not masked. At the request of business taxpayers, the transcript will be mailed to the address of record. Tax professionals may obtain a business tax transcript through the e-Service Transcript Delivery System.
Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5029. Transition to Regulated Commercial Cannabis Market
(a) Beginning January 1, 2018, licensees shall not transport or sell any edible cannabis product
that exceeds 10 milligrams of tetrahydrocannabinol (THC) per serving.
(b) Notwithstanding any other regulation in this division, beginning January 1, 2018, and before
July 1, 2018, licensees may do all of the following:
(1) Cannabis goods that are not in child-resistant packaging may be sold if they are placed into
child-resistant packaging by the retailer at the time of sale.
(2) Non-edible cannabis products that do not meet the THC limits per package specified by the
State Department of Public Health in regulation may be transported and sold.
(3) A distributor may transport and an M-designated retailer may sell medicinal edible cannabis
products that contain 10 milligrams of THC or less per serving regardless of the THC amount in
the package.
(4) Cannabis goods that do not meet the labeling requirements prescribed by the Act or the State
Department of Public Health in regulation may be transported and sold if a sticker with the
applicable warning statement under Business and Professions Code section 26120, subdivision
(c)(1)(A) or (c)(1)(B), is affixed to the cannabis goods prior to sale by the retailer.
(5) Cannabis goods held in inventory at the time of licensure that have not undergone laboratory
testing may be transported and sold if a label stating that the cannabis goods have not been tested
as required under Business and Professions Code section 26070(l) is affixed to each package
containing the cannabis goods prior to sale by the retailer.
(6) Dried flower held in inventory by a retailer at the time of licensure that is not packaged may
be packaged by the retailer into individual packages for sale.
(7) Cannabis products held in inventory by a retailer that do not meet the requirements set by the
State Department of Public Health, pursuant to Business and Professions Code sections 26130
and 26131, for ingredients or appearance may be sold by the retailer.
New IRS resources on IRS.gov help businesses understand tax reform
Last year’s Tax Cuts and Jobs Act made significant changes to the tax law that affect small businesses. The IRS posted two new resources on IRS.gov to help taxpayers understand how these changes affect their bottom line.
Here are some details about these resources:
New publication: Tax reform: What’s new for your business
This electronic publication covers many of the TCJA provisions that are important for small and medium-sized businesses, their owners, and tax professionals to understand. This concise publication includes sections about:
New webpage: Tax Reform for Small Business
This one-stop shop highlights important tax reform topics for small businesses. Users can link to several resources, which are grouped by topic:
Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5028. Subletting of Premises
A licensee shall not sublet any area designated as the licensed premises for the licensee’s
commercial cannabis activity.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and
26070, Business and Professions Code
IRS issues guidance on changes to excess business and net operating losses
WASHINGTON — The Internal Revenue Service issued guidance on excess business loss limitations and net operating losses following law changes in the Tax Cuts and Jobs Act (TCJA).
Excess business losses
The TCJA modified existing tax law on excess business losses by limiting losses from all types of business for noncorporate taxpayers.
An excess business loss is the amount by which the total deductions from all trades or businesses exceed a taxpayer’s total gross income and gains from those trades or businesses, plus $250,000, or $500,000 for a joint return.
Excess business losses that are disallowed are treated as a net operating loss carryover to the following taxable year.
See Form 461 and instructions, available soon, for details.
Net Operating Losses
TCJA also modified net operating loss (NOL) rules. Most taxpayers no longer have the option to carryback a NOL. For most taxpayers, NOLs arising in tax years ending after 2017 can only be carried forward. Exceptions apply to certain farming losses and NOLs of insurance companies other than a life insurance company.
For losses arising in taxable years beginning after Dec. 31, 2017, the new law limits the NOL deduction to 80% of taxable income.
Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5027. Physical Modification of Premises
(a) A licensee shall not, without the prior written approval of the Bureau, make a physical
change, alteration, or modification of the licensed premises that materially or substantially alters
the licensed premises or the use of the licensed premises from the premises diagram originally
filed with the license application. A licensee whose premises is to be materially or substantially
changed, modified, or altered is responsible for filing a request for premises modification with
the Bureau.
(b) Material or substantial changes, alterations, or modifications requiring approval include, but
are not limited to:
(1) The removal, creation, or relocation of a common entryway, doorway, passage, or a means of
public entry or exit, when such common entryway, doorway, or passage alters or changes
limited-access areas within the licensed premises;
(2) The removal, creation, or relocation of a wall or barrier; or
(3) Changing the activities conducted in or the use of an area identified in the last premises
diagram provided to the Bureau.
(c) A licensee shall request approval of a physical change, alteration, or modification in writing,
and the request shall include:
(1) A new premises diagram that conforms to requirements in section 5006 of this division; and
(2) A fee pursuant to section 5014 of this division.
(d) A licensee shall provide additional documentation requested by the Bureau to evaluate the
licensee’s request to modify the premises.
Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business
and Professions Code