Slack Jawed Yokel Explains California Cannabis Taxes

Slack Jawed Yokel Explains California Cannabis Taxes

Slack Jawed Yokel Explains California Cannabis Taxes
Smelly EA – Slack Jawed Yokel

Slack Jawed Yokel Explains California Cannabis Taxes  – they say that the most grievous wounds are self-inflicted. We would have to agree…the following is a blog post that appeared in CPA Practice Advisor – What California Cannabis Businesses Need to Know About Taxes – – properly sourced so everyone can read the original. Our comments follow

 

CLETUS – THIS TIME YA DIDN’T BEAT US – SLACK JAWED YOKEL

It appears that ahrefs.com, one of the big time SEO web crawlers caught our reference to CDTFA and Federal Taxes for California Cannabis on smellystinkyea.com and put the reference under CDTFA in its alerts this morning which appear like this. It does pay to work hard on SEO…this one brings great joy over a holiday weekend.

Slack Jawed Yokel Explains California Cannabis Taxes
Slack-Jawed Yokel Explains California Cannabis Taxes

 

 

Slack Jawed Yokel Explains California Cannabis Taxes
Slack Jawed Yokel Explains California Cannabis Taxes
Slack Jawed Yokel Explains California Cannabis Taxes
Slack-Jawed Yokel Explains California Cannabis Taxes

We thought about disrespecting the Slack-Jawed Yokel, but realized that he did a better job of disrespecting himself than we ever could have done.

Bonus – If it every comes up in trivia, SmellyEA’s first name is Cletus.

Slack-Jawed Yokel Explains California Cannabis Taxes

Summary of our comments on the original:

  1. It certainly gets old having to explain that there are NO minimum education or experience requirements to become an Enrolled Agent see – https://www.slideshare.net/abizinabox/americas-tax-experts-a-cruel-hoax
  2. The licenses in California are Retail, Distribution, Manufacturer, Cultivator, Testing Laboratory, Event Organizer, and Micro-Business
  3. Which helps to explain why three regulatory agencies, Bureau of Cannabis Control, California Dept. of Food and Agriculture – CalCannabis, and California Bureau of Public Health – Manufactured Cannabis Safety Board issue almost 400 pages of Emergency regulations which were just readopted. See https://abizinaboxcannabis.com/bcc-announces-comment-period-extended-emergency-regs/
  4. Fascinating that all you mention is Federal taxes with no mention of the CDTFA – Cannabis Cultivation and Cannabis Excise taxes which have an incredible complexity to all to themselves.
  5. “which doesn’t conform to Section 280E” is gibberish…makes no sense, how does one “conform” to IRC Sec. 280E
  6. “packager” is once again gibberish – the extraction of oil from the trim in California requires a Manufacturer License
  7. Once again nonsense – a Retail licensee might pay a Distributor to store cannabis in a depot type facility, but the notion of a Cultivator to store cannabis is outright IGNORANT.
  8. Which obviously means that your clients are properly either withholding California non-resident taxes if you invoice as a contractor or you are filing a California income tax return at both the entity and individual levels, or FTB might have some investigating to perform. See https://abizinaboxcannabis.com/california-cannabis-biz-check-consultants/
  9. Yet another ignorant comment, the Cole Memo has nothing to do with banking, you might want to read https://www.dorsey.com/newsresources/publications/client-alerts/2018/01/fincen-guidance-on-banking-marijuana
  10. You clearly don’t understand anything about Proposition 215 or physician recommendations or county issued medical cannabis cards in California – See https://abizinaboxcannabis.com/ca-medical-cannabis-card/
  11. Let’s educate you once again – all legally grown cannabis in California is subject to Cultivation Tax and Excise Tax. Adult-Use cannabis is subject to Sales Tax.
  12. Unless you plan on eating the trim itself Cletus, you failed to mention the extraction process.
  13. Wrong yet again, medical cannabis is subject to the cannabis Cultivation and Excise taxes.
  14. Jeff Sessions is the Attorney General not the Secretary of State.
  15. bit sic should probably be but
  16. More gibberish
  17. Might as well demonstrate racist traits for good measure.
  18. Did you really just admit to committing perjury about being a California resident to obtain a County Issued Medical cannabis card?
  19. Really…are you suggesting that anyone providing accounting or tax services to an entity in California is required to have some type of cannabis license. Can you cite the authority?
  20. Your anxiety is quite obvious and very real…you could easily be mistaken for a “tweaker”, we will give you the benefit of the doubt and assume you aren’t a crystal meth addict.
  21. Just to clarify you purchased cannabis in California and somehow transported it to Florida?
  22. The term is alma mater is usually reserved for a college that you obtained a DEGREE rather than a CERTIFICATE from.
  23. [We are speculating here] Makes sense, you would do better with an antipsychotic such as Prolixin Decanoate – generic name – Fluphenazine Decanoate –  is a long-acting form of fluphenazine that is used to treat certain mental/mood problems (chronic schizophrenia)

Back to Smelly Stinky

TIGTA Review IRS Contractors

TIGTA Review IRS Contractors

TIGTA Review IRS Contractors U.S. Investigations Services, Inc. (USIS), a former contractor of the Office of Personnel Management (OPM), is alleged by the Department of Justice to have provided incomplete reviews of

TIGTA Review IRS Contractors
TIGTA

approximately 665,000 background investigations from March 2008 through September 2012 to the Federal Government.

In addition, the Department of Justice prosecuted several USIS employees under contract to conduct background investigations on behalf of the OPM’s Federal Investigative Services for making false representations regarding their work on background investigations, such as indicating that interviews were conducted or records were obtained, when in fact they were not. Incomplete investigations could result in employing or retaining unsuitable individuals in positions with access to IRS facilities, systems, and sensitive information.

TIGTA performed this audit to assess the impact of OPM background investigations conducted by its former support contractor, USIS, on the IRS.

The OPM provided TIGTA with a list of 3,498 background investigations performed by the USIS on IRS employees or appointees between March 2008 and September 2012 alleged by the Department of Justice to have received incomplete reviews. Of these 3,498 background investigations, IRS records indicated that as of October 2017, the IRS still employed 2,058 of these individuals.

Our review of a statistical sample of 76 USIS background investigations conducted on IRS employees or appointees on board as of February 2016 found that documentation was lacking to support the investigative work represented as completed by the USIS in 75 (99 percent) cases. According to the OPM, the policies during the time frame USIS-conducted background investigations took place did not require documentation to be retained in the investigative file for certain types of investigative actions. However, the OPM concluded that in two of the 76 IRS Reports of Investigation, OPM investigative standards had not been met. TIGTA determined that IRS procedures did not contain a process to assess the quality or completeness of background investigations the OPM provided to it.

You can read the full report here.

Smelly Stinky Home

 

Bluewire Strategy – Primate Clan

Bluewire Strategy – Primate Clan

Bluewire Strategy – Primate Clan – here we go again. The founding members of both groups are members of the Hubdoc 50 – Top Cloud Accountants. Based upon a review of the profiles of the entire group, with exceptions granted to The Digital CPA and Bruce Phillips, the monkeys are at least the intellectual equals of the rest of the group. The monkeys also have a tremendous advantage in that they get paid by the transaction, and they have the proven methodology of Amazon Mechanical Turk which truly is the “containerization of human exploitation”.

You can learn more about the application of M-Turk to cloud accounting and virtual bookkeeping in our articles –

However, it is a ten year proven strategy for the off-shoring of low intelligence repetitive mechanical tasks which happens to be the essence of bookkeeping.  The apes have further refined their technique and implemented a Sigma-6 approach to cloud accounting with that Beautiful Accounting Software that they call “Jungle Journal Jockeys

Bluewire Strategy - Primate Clan
Jungle Journal vs. Bluewire Strategy

We attempted to ascertain the social dynamics of both groups, and this is what the consultant we retained explained to us.

As a small digression…while we don’t see anything special about Cloud Accounting….CLOWN ACCOUNTING is an entirely different matter.

Bluewire Strategy - Primate Clan
Clown Accounting Might Be In Your Future

Why Be Social?

 
Many primates and other animals live in social groups. In social groups, individual members coordinate their activities, communicate with one another, and interact in both affiliative (friendly) and agonistic (aggressive or submissive) ways. In many social groups, individuals are gregarious; that is, they interact with one another frequently, engage in a variety of types of social interactions, and typically form and maintain social bonds (strong social relationships) with other individuals. These bonds are often expressed in the form of grooming, a common social activity among primates in which one individual carefully picks through the fur of another and removes any debris or ectoparasites. Grooming serves an important social function for most primates in addition to its hygienic function
 

Group life carries with it inevitable conflict and competition. Individuals must share food resources, water resources, sleeping sites, and mates. While usually mediated by dominance hierarchies in which higher-ranking individuals have priority of access to limited resources, aggressive competition over food and mates is common in primates, and is not only energetically costly but can lead to injury and even death. In addition to energy costs and risk of injury, high levels of aggression-given or received-can lead to chronic psychological stress. Chronic stress can adversely affect health and reproduction in numerous ways.

Bluewire Strategy – Primate Clan

Other socially-induced events may also increase stress levels: in chacma baboons, for example, infanticidal (infant killing) behavior by males-or even simply the immigration of a potentially infanticidal male into a social group-increases stress hormone levels in females with infants. In addition to these social costs of group living, close social contact also increases the potential transmission of pathogens, which increases each individual’s risk of contracting infectious diseases. Finally, groups may be disadvantageous because they are more easily detectable by predators compared to solitary individuals.

Given all of these potential costs of group living, why do so many primates-and other mammals-bother living in groups at all? One might especially wonder about this for the lowest-ranking individuals in a social group (i.e., those who are last in line for the available resources).

Bluewire Strategy – Primate Clan

Despite the costs, sociality is important to these animals for several reasons. Probably most importantly, living in a group likely decreases one’s risk of falling victim to predation. There are three reasons for this. First, in social groups, there are more individuals looking out for predators and thus predators will be detected more quickly. Second, living in a group decreases each individual’s chance of being preyed upon due to an effect called “geometry for the selfish herd”: this states that the larger the group (e.g., 100 versus 10), the lower each individual’s chance (1/100 versus 1/10) of becoming prey. Third, individuals in groups can collectively mob predators and successfully drive them away, whereas lone individuals cannot.

Sociality also benefits animals via access to food and other resources. In groups, there are many individuals looking for food simultaneously and thus detection of good food resources (e.g., ripe fruit; Figure 2) will inevitably be communicated to others simply because group members are usually in close proximity to one another. Group members will also benefit from cooperation over the defense of food-or other limited resources such as water holes and sleeping sites-as groups can out-compete individuals, and larger groups can out-compete smaller groups.

In addition, sociality is beneficial to group-living animals in that it makes it easier for them to find mates. Animals that do not live in groups must either search for mates or opportunistically mate when they encounter other individuals. Group-living animals simply choose mates within their social group.

Bluewire Strategy – Primate Clan

Moreover, sociality allows cooperative socialization of offspring. In social groups, infants and juveniles play with one another, which develops motor skills as well as the social skills necessary to survive and reproduce in a social setting. For example, during social play juveniles receive reinforcement from adults about how dominance hierarchies work, and what it means to have a given rank within a social group of a given species. Thus when they reach adulthood they will have learned what they can and cannot do, and thereby fit into the social fabric of their social group.

Finally, sociality in and of itself appears to carry benefits for individuals. As noted above, one of the costs of group living is the potentially high level of conflict and aggression that occurs among group members, which involves greater energy expenditure, a risk of injury, and chronic stress. In baboons, this socially-induced stress appears to be alleviated by the receipt of affiliative vocalizations, as well as the maintenance of grooming relationships with a small network of close associates.

Ultimately, female baboons with strong social bonds (i.e., social relationships characterized by frequent proximity and grooming;  experience greater offspring survival and even longer lifespans than females with weaker bonds. These studies demonstrate that strong social relationships within groups, beyond group living alone, can carry important fitness benefits for individuals.

Primate Social Systems

 

The social system of a given species is an outcome of

(1) its social structure, the size and composition of a typical group of that species, and

(2) its social organization, how those individuals are organized (i.e., the patterns of spacing, agonistic and affiliative social interactions, philopatry [whether one or both sexes remain in their natal group], and dispersal [whether one or both sexes move to a new group to reproduce]) that typify that species. Each species also tends to have a characteristic mating system (i.e., the pattern of mating among members of each sex). All of these aspects of primate societies vary widely across the primate order.

The least gregarious primates have what is often referred to as a solitary dispersed social system. In these primates, an adult male’s territory overlaps the territory of one or more adult females, but each individual forages alone and maintains social contact mainly through vocal and/or olfactory communication. These primates are typically nocturnal, foraging at night and sleeping in trees during the day. The mating system in these primates is usually polygynous (i.e., each male mates with multiple females). This type of social system characterizes galagos, lorises, some lemurs, some tarsiers, and orangutans. Notably, orangutans are the only anthropoid primates with a solitary social system.

Bluewire Strategy – Primate Clan

Titi monkeys, owl monkeys, some callitrichids (marmosets and tamarins), and many hylobatids (gibbons and siamangs) are characterized by a pair-bonded social system. Here, one adult male and one adult female form a small social group and defend a territory from other pairs. The mating system in these groups is usually monogamous (only one male mates with only one female), though extra-pair copulations have been observed, and the male usually participates in offspring care, which is unusual for male mammals ).

Many marmosets and tamarins live in one-female multi-male groups characterized by cooperative breeding. In this type of system, usually, only one female breed, and that female suppresses the reproduction of any subordinate females via aggression and/or pheromonal (olfactory) signals. Usually, there is more than one breeding male, thus the mating system is polyandrous, a rarity among mammals. Some or all of the individuals in these groups participate in offspring care and this social system is thus often called cooperative polyandry.

One of the most common primate social systems is the one-male group, which characterizes most colobine monkeys, most guenons, patas monkeys, howler monkeys, and some gorillas. Here, a single resident adult male defends a group of (usually) philopatric, related females from other males and, while his tenure lasts, enjoys exclusive mating access to those females (i.e., polygyny).

Sometimes called harems, these groups are always at risk of takeover by non-resident males, who typically form all-male groups while awaiting their chance to become a resident male. Often, takeovers are accompanied by infanticide, in which the new resident male kills the young infants in the group. This behavior has the effect of bringing the mothers back into estrus (sexual receptivity) sooner than they would have otherwise.

Bluewire Strategy – Primate Clan

Also common among primates are multi-male multi-female groups, in which multiple individuals of each sex form large social groups in which the mating system is usually polygynandrous (i.e., both males and females are polygamous in that they mate with multiple members of the opposite sex). These are the largest groups of primates, and usually quite complex socially, with differentiated social and kin relationships among group members.

This type of social system characterizes many monkeys, including macaques, most baboons, vervet monkeys, mangabeys, capuchins, squirrel monkeys, woolly monkeys, and some colobine monkeys, as well as some lemurs-most notably the ring-tailed lemur and sifaka. In most of these species, females are philopatric and males disperse.

Similar to multi-male multi-female groups are the fission-fusion communities of chimpanzees, bonobos, spider monkeys, and some other ateline monkeys. Fission-fusion communities are less cohesive than typical multi-male multi-female groups. These groups occupy very large home ranges in which temporary foraging parties cleave and coalesce over time with changes in resource availability and female reproductive condition. These social systems are typically characterized by female dispersal and male philopatry.

Bluewire Strategy – Primate Clan

The most complex type of social system found in primates, and in mammals as the whole, is the multi-level society (also known hierarchical or modular society)  characterizing hamadryas baboons, geladas, snub-nosed monkeys, and a few other mammals such as elephants. In this type of system, there are at least three levels of social structure: the one-male unit (OMU), the band, and the troop or herd.

The OMU is the reproductive unit and consists of one “leader” male, sometimes a follower male, and several females; the band is the ecological unit that forages and sleeps together, and the troop or herd is a temporary aggregation at a sleeping site or foraging area. In hamadryas baboons, there is a fourth layer between the OMU and the band, the clan, which consists of OMUs and bachelor males linked by social bonds and possibly kinship among males. In geladas, bachelor males join together to form all-male groups. Reproduction in these societies is usually polygynous, and OMUs are always at risk of takeover by bachelor males, who may commit infanticide after taking over females with young infants.

It is important to note that the social organization of a species might not be immediately apparent from its social structure. For example, both geladas and hamadryas baboons are characterized by multiple layers of society, and their social structure is almost identical. However, the social organization of these two species could not be more different. In geladas, the cohesion of OMUs is maintained by philopatric females, as each OMU is a female kin group and these kin groups are taken over as entire units by males.

Bluewire Strategy – Primate Clan

In hamadryas, by contrast, a cohesion of OMUs is maintained by philopatric males who take over females one by one, often exchanging them with other males in their clans, and aggressively condition those females to remain in their OMU. Thus, hamadryas social organization includes strong male-female bonds (the glue that holds together an OMU) and strong male-male bonds (as males are philopatric and thus related to one another within bands and clans), whereas gelada social organization is characterized by strong female-female bonds (which hold together OMUs) but weak bonds between the sexes.

Moreover, one must be careful not to make assumptions about a species’ mating system simply upon observing its social system. For example, multi-male multi-female groups of gorillas may have an age-graded dominance structure in which only the oldest, highest-ranking (alpha) silverback male is allowed to copulate; in this case, the mating system is not polygynandrous (as one might expect in a multi-male group) but instead polygynous.

Another example can be found in guenons, which live in one-male groups. During the mating season, multi-male influxes occur in which outside males come into the group, copulate with the females, and then leave again. The mating system, in this case, is not polygynous, which one would expect, but polygynandrous. Finally, gibbons and siamangs were first thought to be monogamous, but then observations of extra-pair mating (i.e., copulations with individuals outside of the pair-bond) confirmed that they are not always monogamous but sometimes polygynous, polyandrous, or both.

Bluewire Strategy – Primate Clan

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