Aria Biswas

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California cannabis regulation changes Department of Cannabis Control

2022 DCC Proposed Regs Comments

Department of Cannabis Control Public Comments from Meadow

Department of Cannabis Control Public Comments

Pull from our community-created, open-source comments below to submit your own public comments to the DCC

Cannabis CPA Patrick Finnegan and cannabis Tax Attorney Regina Unegovsky shared that in 2021 the CDTFA is starting to use Metrc variance as a means of audit, which means having a cannabis retail system that keeps you fully compliant is more important than ever.

How Cannabis Dispensaries Can Avoid & Prepare for a Cannabis Audit

2021 marks three years since the launch of California’s legal cannabis market in January 2018; this milestone is triggering a wave of audits by the California Department of Tax and Fee Administration (CDTFA), as originally reported in an article published in Marijuana Business Daily by John Schroyer titled “[California marijuana firms face more state tax audits, millions of dollars in unpaid taxes](https://mjbizdaily-com.cdn.ampproject.org/c/s/mjbizdaily.com/california-cannabis-firms-face-more-state-tax-audits-unpaid-taxes/amp/ "California marijuana firms face more state tax audits, millions of dollars in unpaid taxes").”

The article states that “cannabis tax experts warn the industry should expect state regulators to ramp up tax enforcement, noting that several audits of marijuana businesses are already underway.”

We asked two of the tax experts quoted in the article, CPA Patrick Finnegan and Tax Attorney Regina Unegovsky, to shed more light on what’s going on with taxes, tax enforcement, and what to do in case of an audit. 

<figure>
  <video-player url="https://www.youtube.com/watch?v=FLYiXoARcGU"></video-player>
  <figcaption>In this excerpt from our webinar, cannabis CPA Patrick Finnegan shares about tax audits and the inaccuracies he's seeing in the way dispensaries are calculating their sales, local and excise taxes. </figcaption>
</figure>

The three year make California’s legal cannabis market, which equals the state’s statute of limitations for how far back auditors from the California Department of Tax and Fee Administration (CDTFA) can go to examine business tax returns. 

In this discussion, we learned that the CDTFA is increasingly reviewing Metrc accounts and using inventory variance as a means of audit up and down the California supply chain, which means having a system that keeps you fully compliant is more important than ever. While other systems let you oversell, Meadow's built-in guardrails keep you compliant with clean inventory in all of your sales channels (in-store, delivery & online). 

<figure>
  <video-player url="https://www.youtube.com/watch?v=Xc_uMDx40xg"></video-player>
  <figcaption>Watch the full webinar conversation with cannabis CPA Patrick Finnegan, cannabis Tax Attorney Regina Unegovsky, and Wally Wong at Meadow.
</figcaption>
</figure>

Learn more about Meadow's [cannabis compliance software](https://getmeadow.com/blog/tags/cannabis-compliance "cannabis compliance software").

Get insight into how to prepare for tax audits in California cannabis

Insight Into 2021 CDTFA Tax Audits & Tax Issues in the California Cannabis Supply Chain

Nicole Elliott Director of Cannabis Control in California in conversation with Meadow CEO David Hua on stage at Meadowlands 2021 at Camp Navarro.

Meadowlands 2021 with Nicole Elliott Director of Cannabis Control

Meadowlands 2021 conversation with Nicole Elliott of California's Department of Cannabis Control with Meadow CEO David Hua

DCC Director Nicole Elliott with David Hua Meadow

Read and listen to the full Meadowlands conversation with Director of the DCC, Nicole Elliott

Posts tagged “Cannabis Compliance”

2022 DCC Proposed Regs Comments

Insight Into 2021 CDTFA Tax Audits & Tax Issues in the California Cannabis Supply Chain

Meadowlands 2021: Updates from the DCC with Director Nicole Elliott

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