Everything you need to know about the product and billing.
What makes Calyx CPA different from a regular accounting firm?
Calyx CPA is a specialized cannabis and psychedelic CPA firm focused on tax strategy, 280E mitigation, and accounting for regulated and emerging plant medicine businesses. Unlike general accounting firms, we work extensively in the cannabis and psilocybin industries, where tax law is unsettled, and audit risk is real. Our approach prioritizes defensibility and technical accuracy.
Do you only work with cannabis businesses?
No. While we are well known for our work in cannabis, we also serve regulated psilocybin businesses, psychedelic practitioners, and emerging plant medicine companies. We also work with select businesses in other industries, particularly where owners value precision, defensibility, and long term planning.
What types of cannabis and psychedelic businesses do you support?
We work with cultivators, manufacturers, wholesalers, dispensaries, vertically integrated operators, management companies, and ancillary service providers. In the psychedelic space, we support licensed psilocybin service and healing centers, facilitators, and certain grey market operators. Our services span the full supply chain.
Do you work with startups or only established companies?
We work with both cannabis and psilocybin startups as well as established operators. For startups, we assist with entity formation, tax elections, and accounting system setup. For established businesses, we provide advanced 280E strategy, Section 471(c) inventory accounting, cleanup work, and audit ready reporting.
Do you help with entity formation and restructuring?
Yes. We advise on LLCs, partnerships, S corporations, and C corporations for cannabis and psychedelic businesses. Proper structuring is critical for tax efficiency, 280E positioning, investor readiness, and long term exit planning.
Can you help if my business operates in multiple states?
Yes. We provide multi state tax and accounting support for cannabis and plant medicine businesses, including city and state income tax. We provide support for marijuana specific excise taxes, sales tax considerations, and income apportionment planning.
How does Calyx CPA approach Section 280E?
We take a highly technical and proactive approach to 280E. We use inventory accounting under Section 471(c), prepare detailed and accurate returns, and evaluate whether 280E should apply at all in light of current federal developments.
Do you take aggressive positions challenging 280E?
Yes. Calyx CPA is one of the few firms actively taking the position that Section 280E should not apply ahead of federal cannabis rescheduling. We believe the legal and regulatory landscape has shifted significantly, and we help clients evaluate whether this approach is appropriate. When we take this position, we do so transparently and defensibly.
How do you disclose your tax position to the IRS?
When filing a return that challenges the application of 280E, we use Form 8275, Disclosure Statement, to clearly disclose our position to the IRS. This supports penalty protection, demonstrates good faith, and shows that the filing is based on a serious legal interpretation rather than concealment.
Are your tax returns still accurate if you challenge 280E?
Absolutely. Our work is built around technical precision and audit readiness. Even when taking aggressive positions, we prepare highly accurate returns supported by documentation, inventory accounting, and proper disclosure. Our goal is to file returns that are professional, defensible, and taken seriously by the IRS, banks, investors, and potential buyers.
Do you provide IRS audit representation?
Yes. Our engagements often include IRS audit support and state tax examination defense. Cannabis and psychedelic businesses face elevated scrutiny, and we prepare tax filings with the expectation that they may need to be defended.
Do you offer bookkeeping services or only tax preparation?
We provide both bookkeeping and tax preparation services for cannabis and psychedelic businesses. Our bookkeeping emphasizes accurate cost tracking, inventory accounting, and clean financial reporting that supports 280E positioning, regulatory compliance, and lender credibility.
Can you work alongside my existing bookkeeper or CFO?
Yes. We frequently coordinate with in house finance teams, bookkeepers, and external CFOs. Our role is to ensure that accounting systems support industry specific tax compliance and defensible reporting.
Can you help clean up my books and get my tax filings back in order?
Yes. Many clients come to us after years of messy bookkeeping or improperly prepared tax returns. We help businesses catch up, correct exposure, and rebuild clean financial records.
What if my previous CPA did not understand cannabis or psychedelic tax law?
This is common. Many businesses come to us after working with generalist CPAs unfamiliar with 280E, Section 471(c), or the realities of regulated plant medicine industries. We review prior filings, assess exposure, and implement a more specialized strategy moving forward.
Can you help my business become bankable or investor ready?
Yes. We prepare financial statements and tax returns with the expectation that they may be reviewed by banking institutions, investors, or potential buyers. Our emphasis is on accuracy, consistency, and credibility so that third parties can rely on your reporting during financing, diligence, or acquisition discussions.
Do you help with exit planning or preparing a business for sale?
Yes. We regularly assist clients with exit strategy planning, including cleaning up financial statements, addressing tax exposure, strengthening defensibility under 280E where applicable, and preparing for buyer or investor due diligence.
Why are your fees often higher than those of general accounting firms?
Where a general tax preparation business might focus on quick and low-cost deliverables, we maintain a smaller client portfolio relative to the accountants we have on staff. We are also very responsive. Finally, our fees reflect the specialized expertise, legal awareness, and level of defensibility required to operate responsibly in these industries. Unqualified accountants operating in these industries pose the greatest risk to taxpayers.
What is the first step to working with Calyx CPA?
The first step is a consultation where we review your recent tax returns, financial statements, ownership structure, and goals. From there, we determine scope, outline a clear engagement, and begin onboarding once the agreement is signed and the initial payment is received.
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