IRS and Taxes in the Cannabis Industry: Risk Factors, Red Flags, and Investigation from an Examiner’s Perspective
Peggy Koller, Owner, GreenLeaf Accounting, LLC
Cannabis is a federally illegal, cash-intensive, lucrative industry that is at high-risk for tax fraud… and the IRS is watching closely. CEOs need to be aware of the risk factors and red flags that the IRS looks for and how examiners use that information to tailor their investigations. Cannabusiness owners also need to understand the examination procedures and investigative tools the IRS examiners employ – such as Cash-T Account Analysis, and Vertical and Horizontal Analysis of key business ratios – and how they can be used as evidence to build a case. Having a deeper understanding of tax fraud investigation from the examiner’s perspective, CEOs can better defend themselves against fraud risk and the potential loss of their business assets and personal freedom.
Peggy Koller is the owner of GreenLeaf Accounting, LLC, a boutique accounting firm located just north of Orlando in Lake County, Florida, that specializes in accounting and CFO solutions for businesses in the cannabis space. She also provides fraud prevention consultation, forensic accounting, and litigation support to cannabusinesses.
Peggy has lived in Central Florida most of her life and started her undergraduate studies at the University of Central Florida. She later graduated with honors from the University of Phoenix with her Bachelor of Science in Accounting degree. Peggy is currently finishing her Master of Science in Forensic Accounting and Fraud Examination from the John Chambers College of Business and Economics at West Virginia University, a program developed as the national curriculum for forensic and fraud accounting programs on behalf of the National Institute of Justice (Department of Justice).
Peggy has over 30 years of experience in public, private, and governmental accounting. Upon seeing the need for accounting professionals with knowledge specific to the cannabis industry, she transitioned her practice to focus solely on businesses in the space, and she publicly supports the legalization movement. She also serves her community as a Florida Supreme Court Certified Mediator, volunteering with the Alternative Dispute Resolution Program in Florida’s Fifth Judicial Circuit.