Money, Taxes & Banking

Payroll taxes are one of the most aggressively enforced areas of federal law. Cannabis dispensaries that fail to remit withheld taxes risk penalties, daily interest, audits, and personal liability under the Trust Fund Recovery Penalty. This page explains common payroll mistakes, misclassification risks, and how payroll errors escalate into enforcement.

Cannabis is classified as a Schedule I controlled substance under 21 CFR § 1308.11 and the Controlled Substances Act (21 U.S.C. § 801 et seq.). This federal classification restricts banking access, eliminates most federal tax deductions under IRC § 280E, prohibits interstate transport and mailing, limits access to federal programs, and subjects cannabis operators to ongoing DOJ and DEA enforcement authority regardless of state legalization.

Cannabis is still federally illegal. Because it is Schedule I, Visa and Mastercard do not allow normal credit card processing for dispensaries. This page explains why this affects your dispensary, why Visa and Mastercard don't work, and why merchant processing is limited.

Cashless ATM is a payment workaround used by dispensaries when traditional credit cards are restricted. Transactions are coded as ATM withdrawals rather than retail sales, which allows card use under sponsor bank structures. This page explains how the system works, why networks shut programs down, and what operators should expect if processing is terminated without notice.

Commingling happens when dispensary revenue and personal funds are mixed without clear documentation. This page explains real examples of commingling, how it triggers IRS audits and banking review, how it increases personal liability risk, and the practical steps operators must take to keep business and personal finances fully separated.

Cannabis businesses face elevated audit risk due to IRS 280E and high cash volume. This page explains common red flags, including revenue that does not match deposits, improper COGS allocations, missed quarterly payments, cash reporting gaps, and payroll tax violations that can trigger IRS review.

Cannabis banks may request updated ownership documents, financial statements, tax returns, POS sales reports, and proof of active insurance during routine or enhanced monitoring. This page explains what records dispensaries must maintain, how inconsistencies trigger follow up, and why documentation gaps can increase banking risk.

When you file a cannabis insurance claim in New York, the process becomes a legal and financial investigation. Payment is not automatic. Insurers evaluate exclusions, security warranties, documentation, and policy conditions before issuing a check. This guide explains exactly what happens after you report a loss and how to protect your position.

Cannabis banks monitor whether deposits match reported sales patterns. This page explains how POS totals, discounts, refunds, payment methods, inventory movement, and deposit activity should align, why weekly reconciliation is a compliance function, and how mismatches can trigger account review or banking risk.