Co-hosted by the Tax Section and the Medical Marijuana and Hemp Committee
If you represent medical marijuana growers, processors, and/or dispensaries, this is a 'CAN'T MISS' program!
Pennsylvania's Medical Marijuana Act authorizes production and distribution of marijuana for medical purposes in the Commonwealth, but the product remains illegal under the Controlled Substances Act. This creates significant business and tax issues for those who wish to participate in this industry, as well as ethical issues for attorneys who represent those participants.
This two hour CLE course will cover the ethical obligations associated with counseling clients whose business is legal under Pennsylvania law but whose activities may violate federal law. Rule 1.2(e) of the Pennsylvania Rules of Professional Conduct provides that "[a] lawyer may counsel or assist a client regarding conduct expressly permitted by Pennsylvania law," but it requires that the lawyer advise "the client about the legal consequences, under other applicable law, of the client's proposed course of conduct."
The program will also address some unique tax issues these businesses may face:
- They cannot deduct ordinary business expenses because they are involved in the sale of a controlled substance. Consequently, they need to carefully consider their corporate and tax structure and focus on capitalization of expenses that are associated with generating their inventory to the extent permissible.
- Many of them do a significant amount of business in cash because of limited availability of banking services, which is a red flag in tax audits.
- Doing business in cash also triggers information reporting requirements.
Finally, the program will briefly examine the current Wolf administration positions, including Governor Wolf's recent letter to U.S. Attorney General Sessions and Pennsylvania Attorney General Shapiro's stance on the Pennsylvania Medical Marijuana program.
Learn how to address some of the business and tax issues affecting this industry so that you can more effectively counsel your clients.