Cloud of Confusion

(Image from CPA Practice Advisor)

Staff at the American Institute of Certified Public Accountants, along with the accountancy boards of Colorado and Washington, have published an issues brief for CPA's who are thinking about taking on clients in the marijuana industry.

The issues are many, but they boil down to two: whether to service a business that is "state-legal/federally-illegal" and whether such clients violate the "good moral character" requirement for being a CPA.

The recreational use of marijuana is legal in certain states, but a CPA cannot knowingly provide services to organizations that are violating Federal law.

Furthermore, he or she can forget about trying to get a reciprocal license in a jurisdiction where marijuana use is illegal. Having such a client would be prima facie evidence of poor moral character.

Despite such obstacles it's very clear that this highly scrutinized, regulated and growing industry is in great need of the accounting, tax, IT, and other financial services that CPA's can provide. However, having a client in the marijuana industry risks losing one's license and worse, one's reputation for probity.

I know what you're thinking, dear reader, concern about "good moral character" and "probity"---how quaint!