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It’s Illegal! – Marijuana Related Businesses and the Accounting Profession

Recent legislation has resulted in legalized marijuana in more than half of the US states, with moreexpected. The industry is increasingly turning to CPA’s for assistance with tax compliance and theirabundance of cash. Professionals need to be aware that no Federal protection exists for recreational marijuana and that Federal laws like RICO and Money Laundering pose tremendous risks to all aspect of the marijuana industry. Professional ethics have important implications for CPAs, exposure to investigations and related sanctions can occur directly, and indirectly through criminal or regulatory investigations of clients.