Working With and Not Against, IRS Revenue Code 280E

Working With and Not Against, IRS Revenue Code 280E

Cannabis operators face IRS Revenue Code 280E restrictions, but smart tax planning and strategies allow entrepreneurs to mitigate its impact on their business.

Komorn Law is Michigan’s top cannabis law firms when it comes to licensing, consulting and legal defense.

Call them if you’re thinking about venturing into the marijuana business in Michigan (248) 357-2550

Being a legal cannabis company, you are likely familiar with the IRS Tax Code 280E. This tax code sets forth financial hurdles directly related to the amount of tax liability you owe the government at the end of the year.

From cultivators to retail shop owners, whether operating in the medical or adult-use sector, the burdensome financial implications of 280E pose significant challenges for legal businesses in the cannabis industry. The ambiguity surrounding the IRS guidelines on acceptable business write-offs creates substantial obstacles for company owners, hampering their ability to navigate the complex landscape effectively.

Read the rest of the article and more here at Ganjapreneur

Working With, Not Against, IRS Revenue Code 280E

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Michigan Improved Workforce Opportunity Wage Act

Michigan Improved Workforce Opportunity Wage Act

IMPROVED WORKFORCE OPPORTUNITY WAGE ACT

   Act 337 of 2018

An initiation of legislation to enact the Improved Workforce Opportunity Wage Act which would fix minimum wages for employees within this state; prohibit wage discrimination; provide for a wage deviation board; provide for the administration and enforcement of the act; prescribe penalties for the violation of the act; and supersede certain acts and parts of acts including 2014 PA 138.

History: 2018, Act 337, Eff. Mar. 29, 2019

Compiler’s Notes: Public Act 337 was proposed by initiative petition pursuant to Const. 1963, art 2, section 9. On September 5, 2018, the initiative petition was approved by an affirmative vote of the majority of the members of the Senate and an affirmative vote of the majority of the members of the House of Representatives, and filed with the Secretary of State on September 5, 2018.

The “People” of the State of Michigan enact:

 

Document Type Description
Section 408.931 Section Short title.
Section 408.932 Section Definitions.
Section 408.933 Section Applicability of act.
Section 408.934 Section Minimum hourly wage rate.
Section 408.934a Section Compensation for workweek in excess of 40 hours; exceptions; rules; unpaid minimum wages; appropriation; compensatory time in lieu of monetary overtime compensation.
Section 408.934b Section Training hourly wage; employee less than 18 years of age; displacement prohibited; violation; civil fine.
Section 408.934c Section Rates for apprentices, learners, and persons with physical or mental disabilities; establishment.
Section 408.934d Section Minimum hourly wage; establishment; conditions; gratuities defined.
Section 408.935 Section Wage deviation board; appointment, qualifications, and terms of members; chairperson; commissioner as secretary; quorum; vote on recommendation or report; conducting business at public meeting; notice of meeting; availability of writings to public; compensation and expenses; obtaining data from employer; report to commissioner; reconsideration of rate.
Section 408.936 Section Rules.
Section 408.937 Section Statement of hours, wages, and deductions; inspection; posting of regulations and orders.
Section 408.938 Section Administration and enforcement of act; investigating and ascertaining wages; revealing facts or information.
Section 408.939 Section Violation of act by employer; civil action; fine.
Section 408.940 Section Applicability of act; payment in accordance with minimum wage and overtime compensation requirements.
Section 408.941 Section Discrimination against employee serving on or testifying to wage deviation board; violation.
Section 408.942 Section Discharge of employees within 10 weeks of employment; violation.
Section 408.943 Section Discrimination based on sex.
Section 408.944 Section Operation of massage establishment; violation.
Section 408.945 Section Inconsistent acts or parts of act; reference to workforce opportunity wage act.

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Michigan communities still opted out of adult-use marijuana sales in 2023

Michigan communities still opted out of adult-use marijuana sales in 2023

Adult-use recreational marijuana has been legal in Michigan since voters approved a ballot proposal in the 2018 election, and sales commenced in 2019. However, numerous Michigan communities have chosen not to participate.

That doesn’t mean recreational cannabis is illegal in these areas, it just means that businesses are prohibited from selling it.

Among the 1,773 municipalities in Michigan, which includes cities, villages, and townships, over 1,300 have chosen not to participate in cannabis sales and associated tax revenue.

Komorn Law is Michigan’s top cannabis law firms when it comes to licensing, consulting and legal defense.

Call them if you’re thinking about venturing into the marijuana business in Michigan (248) 357-2550

Opted Out

Here is the list of communities that have opted out.

(Please note this is an evolvoing list and changes are made often. Check it often if you need the information).

Opt IN and Opt OUT Full List

(Note this list changes and should be checked at the time of interest in licensing or doing cannabis business in Michigan)

Fight back

If you don’t want to submit and plead and want to fight for your rights.
Call our office: Komorn Law (248) 357-2550.
We have defended many cases with positive outcomes since 1993.

 

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 What Are Your First Amendment Rights For Now

 What Are Your First Amendment Rights For Now

The Constitution of the United States is the supreme law of the United States of America for now. It superseded the Articles of Confederation, the nation’s first constitution, in 1789. Originally comprising seven articles, it delineates the national frame and constraints of government.

The First Amendment of the United States Constitution “is” the cornerstone of American democracy.

It’s a powerful shield protecting our fundamental right to express ourselves freely and engage in open discourse. But understanding the intricacies of these rights and how they apply in the modern world can be tricky.

So, let’s dive into your First Amendment toolbox, equipping you with the knowledge to navigate the landscape of free speech.

Freedom of Speech:

This is the big one, the right to express your thoughts and opinions without fear of government censorship. Whether you’re a fiery political commentator or a budding poet, your voice matters. This right extends to various forms of expression, from written and spoken words to artistic creations and even symbolic acts.

Remember, however, that this freedom isn’t absolute. Speech that incites imminent lawless action (“fire in a crowded theater”), or is demonstrably false and harmful (“yelling fire in a non-burning building”) can be restricted so can other speech depending on the powers at be.

Freedom of Religion:

The First Amendment guarantees both freedom of religion and freedom from religion.

This means you have the right to practice any faith (or no faith at all) without government interference. You can build houses of worship, engage in religious ceremonies, and share your beliefs openly.

However, this freedom doesn’t extend to actions that violate other laws or infringe upon the rights of others.

Komorn Law is one of Michigan’s top 10 legal defense firms
If you a looking to hire a law firm to fight for your rights tap to call us
(248) 357-2550

Freedom of the Press and Assembly:

The press acts as a “vital” watchdog for our “democracy”, and the First Amendment protects its right to gather and report the news freely. It also acts as a mouthpiece for whoever is buying.

This includes traditional media outlets like newspapers and television stations, as well as online platforms and independent journalists.

Similarly, the right to assembly allows you to gather peacefully to protest, petition the government, or simply express your collective opinion.

Freedom to Petition the Government:

This right lets you voice your concerns and demands directly to your “elected” representatives.

You can write letters, make phone calls, attend town hall meetings, or even stage peaceful protests to make your voice heard.

Remember, there’s a claim that the government is accountable to the people, and your voice plays a crucial role in shaping public policy if you yell loud enough.

Navigating the Digital Age:

The rise of the internet has blurred the lines between traditional and new media, raising new challenges for First Amendment interpretation.

Issues like online hate speech, “fake news,” and content moderation on social media platforms are constantly evolving.

It’s important to remember that the core principles of the First Amendment still apply online, but how they are interpreted and enforced in this new landscape remains an ongoing power struggle.

Understanding the Limits:

While powerful, your First Amendment rights are limited.

Certain types of speech, like obscenity, defamation, and true threats, can be restricted.

Additionally, the government has a legitimate interest in maintaining public order and safety, which can sometimes lead to limitations on free speech and assembly.

It’s crucial to understand these limitations and engage in responsible speech that doesn’t harm others or incite violence. If you don’t understand, an unscheduled confinement in the fortress of solitude may reassure your understanding of who is in charge of those rights.

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Court rules that cannabis grows of any size is just a misdemeanor in Michigan

Court rules that cannabis grows of any size is just a misdemeanor in Michigan

According to MLive – The likelihood of black-market marijuana growers in Michigan facing full-blown, paramilitary-style raids featuring battering rams and heavily armed narcotics teams has diminished. But everyone else knows better.

Growing illegal marijuana in Michigan, even potentially thousands of plants, is only a misdemeanor crime, the state Court of Appeals ruled on Oct. 5, 2023.

Attorney Michael Komorn of the Komorn law firm specializes in cannabis defense and currently has several clients charged under felony marijuana possession laws. In light of the Court of Appeals ruling, he plans to file motions requesting those charges be reduced to misdemeanors.

Komorn said most prosecutors and police have already placed a low priority on marijuana enforcement, except for “certain pockets” of the state.

“They’ll raid like the old days, come in with guns and masks and go through that whole process,” he said, “but their dilemma is, how do we charge somebody. What, do you get charged with a misdemeanor?

 

“I have a number of cases where they’ve seized property and not charged anybody. And you can only reap the benefits of forfeiture if you get a felony conviction.”

Read the full article here at MLive

Federal Law (Oct 2023) 

Don’t count out the Feds for a good raid or two.

DEA

Under federal law, marijuana is a Schedule I controlled substance, meaning that it has a high potential for abuse and no currently accepted medical use. This means that it is illegal to possess, manufacture, distribute, or dispense marijuana, except for certain research purposes.

The federal laws regarding marijuana are enforced by the Drug Enforcement Administration (DEA). The DEA can investigate and arrest people for marijuana offenses, and it can also seize marijuana and other assets related to marijuana trafficking.

The penalties for marijuana offenses under federal law can be severe. For example, possession of marijuana can be punished by up to one year in prison and a fine of up to $1,000. Manufacturing, distributing, or dispensing marijuana can be punished by up to five years in prison and a fine of up to $250,000.

However, it is important to note that the federal laws regarding marijuana are in conflict with the laws of many states. In recent years, a growing number of states have legalized marijuana for medical or recreational use. Despite the state laws, marijuana remains illegal under federal law.

This conflict between federal and state law has created a number of challenges for law enforcement and the marijuana industry. For example, it is unclear whether federal law enforcement officials can arrest people who are using or selling marijuana in states where it is legal. Additionally, the legal marijuana industry has difficulty accessing banking services and other financial resources, because banks are afraid of violating federal law.

There is a growing movement to reform the federal laws regarding marijuana. A number of bills have been introduced in Congress that would legalize marijuana at the federal level or deschedule it from the Controlled Substances Act. However, it is unclear whether any of these bills will be passed into law.

In the meantime, the conflict between federal and state law remains. People who use or sell marijuana in states where it is legal should be aware that they are still violating federal law.

Don’t tell that to the taxman though – See section 280E of the IRS code.

 

taxing illegal activities-is that even legal

 

Michigan

Michigan has seen a rise in “illegal” marijuana grows in recent years, despite the state’s legalization of recreational and medical marijuana in 2018. These grows are often large-scale operations that operate without a license and violate state laws.

There are several reasons why individuals may choose to engage in illegal marijuana cultivation. Some individuals may opt for this path to evade taxation on their marijuana sales, while others may partake in the black market trade. Additionally, certain individuals may unknowingly cultivate marijuana illegally due to a lack of awareness regarding their state’s marijuana laws.

Cannabis grows can have a number of negative consequences. They can be a nuisance to neighbors, due to the smell of marijuana and the increased traffic in and out of the property.

Cannabis grows can also be a public safety hazard, as they may use dangerous chemicals and electrical equipment. Additionally, these alleged illegal grows can contribute to the black market for marijuana.

The Michigan State Police (MSP) is responsible for investigating illegal marijuana grows in the state. The MSP has a dedicated Marijuana and Tobacco Investigation Section (MTIS) that investigates these crimes.

In recent years, MTIS has conducted hundreds of investigations and seized millions of dollars worth of marijuana from illegal grows.

You can find out what time it is by calling 202-762-1401.

 

If you are thinking about growing marijuana in Michigan, it is important to make sure that you are doing so legally. You can find more information about Michigan’s marijuana laws on the website of the Michigan Cannabis Regulatory Agency or consult an experienced law firm regarding cannabis licensing in Michigan such a Komorn Law.

Fight back

If you don’t want to submit and plead and want to fight for your rights.
Call our office: Komorn Law (248) 357-2550.
We have defended many of these cases with positive outcomes.

 

Did You Know

Michigan State Police Legal Updates

MSP Legal Update No. 153 (01/2023)

  • Search & Seizure: The smell of marihuana, standing alone, no longer constitutes probable cause to search for that substance
  • Vehicle Code: Violation for impeding traffic requires evidence the accused’s conduct actually affected the normal flow of traffic.

Legal Update No. 153 (01/2023)

 

MSP Legal Update No. 150 (01/2022)

  • Vehicle Code: Persons under the age of 21 may be prosecuted for operating a motor vehicle with the presence of marihuana in their system
  • Criminal Law: Ethnic intimidation based on gender includes harassing or intimidating another person because of the actual or perceived gender of that person.

Legal Update No. 150 (01/2022)

 

MSP Legal Update No. 149 (10/2021)

  • Search & Seizure: Persons have a reasonable expectation of privacy in their property against “drone” surveillance conducted without a warrant or pursuant to a recognized exception to the warrant requirement
  • Search & Seizure: The “community caretaking” exception to the Fourth Amendment warrant requirement does not extend to the home.

Legal Update No. 149 (10/2021)

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