” I thought he had something legal to cover up the other stuff.” Apparently, so did he, lol.
I remember there was discussion about States where marijuana is legal even though producing and selling it is still federally illegal, and people afraid of claiming on tax returns. They did need to claim it.
Gubamyster, did you come across this?
I do not have any marijuana clients, nor do I want any.
You do have to report all of your income & for Federal purposes, you cannot deduct any operating expenses. So you just pay income tax and SE tax on the total receipts, for the Feds. Generally, you can take expenses for state purposes.