The FTB has a new form for reporting cannabis deductions in 2020. Form 4197 will allow taxpayers involved in commercial cannabis activity to report deductions, credits, exclusions, and exemptions. The FTB plans to send over 5,000 “Welcome Letters” to licensed cannabis businesses in January 2021 to provide more information and resources regarding tax compliance for their business.
To read more about how the FTB’s Cannabis Business Team educates and reaches out to taxpayers, click here.
