Weeding the News – January 2, 2026
Volume 2, Issue 3
The Newsletter’s Aim
Weeding The News – a breakdown of cannabis news, important events, and top-notch accounting tips – aims to entertain and inform you as we watch the cannabis industry transform before us.
The information contained in Weeding The News issues is provided for informational purposes only and should not be construed as tax or legal advice.
© 2026 BTA Corp. All rights reserved. AI-generated.
What’s on the Docket
President Trump has signed an Executive Order rescheduling cannabis. Minnesota and the Bois Forte Band of Chippewa signed a tribal-state cannabis compact. California grants $30M to research THC drinks, while TerrAscend expands its New Jersey footprint. In our Industry Insights section, we hear from a California delivery operator. We highlight some cannabis jobs and, as always, bring you some topical tax strategies.
Cannabis in Los Angeles and Beyond
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NORML reports that President Trump issued an executive order directing federal agencies to initiate rescheduling marijuana from Schedule I to Schedule III, advancing a long-standing federal policy shift. Read more from NORML.
The National Cannabis Industry Association (NCIA) welcomes the federal decision to move cannabis to Schedule III. It underscores the need for further clarifications in federal guidance to support state-legal markets and businesses. Read more from the NCIA.
The NCIA‘s State Regulations Committee issued a white paper, “Equity and Access: Making the Case for Cannabis Consumption Lounges,” which argues that legal cannabis markets need consumption lounges to ensure access, promote equity, support patients, drive economic development, and address regulatory gaps. Download the White Paper.
Federal marijuana rescheduling may ease taxes and boost research for cannabis businesses. Still, experts warn it won’t instantly change enforcement, legalize interstate commerce, or entirely reshape regulations without further federal action. Read more from LAist.
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California is directing $30 million in marijuana tax revenue to fund academic research into THC drinks, terpenes, tribal market participation, older adult use, and other cannabis science topics, expanding evidence-based policy and public health knowledge. Read more from The Marijuana Herald.
Tennessee’s new law shifts hemp-derived cannabinoid oversight from agriculture to the Alcoholic Beverage Commission, allowing regulated on-site sales at bars/restaurants and imposing licensing, THC limits, taxes, and stricter compliance rules. Read more from Dickinson-Wright.
TerrAscend has closed its acquisition of Union Chill Cannabis Company, expanding its New Jersey retail footprint to four dispensaries, adding a location generating over $11 million in annual revenue and strengthening its state market position. Read more from ROI-NJ.com.
© 2026 BTA Corp. All rights reserved. AI-generated.
Minnesota and the Bois Forte Band of Chippewa signed a tribal-state cannabis compact to cooperate on adult-use cannabis regulation, advance economic growth, protect public health, and respect tribal sovereignty in the state’s legal market. Read more on FOX 21 Local News.
A campaign aiming to repeal Massachusetts’s adult-use cannabis market has gathered enough support to move forward for the 2026 ballot, targeting issues like taxes, social equity, and licensing rules to challenge the current law. Read more on Cannabis Business Times.
New Jersey’s medical cannabis enrollment has fallen sharply, now at about 40% of its 2022 peak as patients shift to the adult-use market, despite lower fees and incentives to stay in the medical program. Read on from Hemp Gazette.
© 2026 BTA Corp. All rights reserved. AI-generated.
Abroad
Germany’s Federal Institute for Drugs and Medical Devices reported that in Q3 2025, Germany imported 56.915 tonnes of medical cannabis, revising Q2 figures upward, and with Canada and Portugal as major suppliers; import caps were increased to allow continued growth. Read more from ICBC.
Wageningen University researchers reconstructed ancient cannabis enzymes, showing they generate multiple cannabinoids and work efficiently in biotech systems. The findings deepen understanding of cannabinoid evolution and may support the development of new medicinal cannabis varieties with potential anti-inflammatory benefits. Read more on Dutch News.
Sannabis S.A.S., a licensed Colombian cannabis operator, commented on how recent U.S. marijuana rescheduling won’t automatically legalize imports but could affect medical cannabis travel, trade, and international regulatory dynamics. Read more from Yahoo Finance.
*AD The Medical Cannabis Primer by Dr. Ruth Fisher, PhD, co-author and publisher Art Fisher *
Tax Strategies
New Year – 2026 – Best Practices
Most businesses have calendar-year ends so that the article will assume this for any dates mentioned herein.
The tax filing for 2025 will be more challenging than in other years in recent history. The OBBA bill was passed with an effective date of July 4th, 2025. It includes some minor references dated January 2025. Some parts of the law may go into effect on January 1, 2027. Then there is the Executive Order signed by President Trump on December 18, 2025, which has not yet been fully sorted out.What are some different strategies for the 2025 tax year?
1. Complete the year-end accounting for the company and file on time without extension.
2. Complete the year-end accounting for the company and file for an extension.
3. Don’t worry about year-end accounting; go on extension and complete the year-end accounting and tax return by the extended due date.
It is very helpful from an operational perspective to complete the prior-year-end accounting in a timely manner. It prepares the company for moving forward with income tax return preparation, but it has several other benefits:
A. The company will have an accurate starting point for accounting in the new year.
B. Several other tax reports will be based on final prior year accounting, such as Unsecured property tax, typically due in April, and some other annual business tax reports.
C. It is also very helpful to reconcile various accounts with completed year-end accounting. Major accounts include various balance sheet accounts such as accounts receivable, accounts payable, capital contributions, and distributions.
The next major decision is whether to file on time or to file an extension and then file by the extended due date. Does the company have adequate cash flow to file timely and fully pay the taxes due per the completed income tax return? If the answer is “yes,” then it may be fine to file and pay on time. If there is a reason to file an amended income tax return in the future, the company will be without the cash flow used to pay the taxes until the amended return is processed and the tax overpayment is received.
An extension is only to file the return. It is not an extension to pay the taxes.
If the company does not have the cash flow to pay the tax liability in full, it is helpful to pay as much as possible when filing the extension. This statement is made in light of the heavy tax liability that the cannabis industry has. Paying some of the taxes shows the company’s “good faith.”
The company does not demonstrate prudent business behavior by leaving both year-end accounting and income tax returns for work until late summer or the fall. The company will lack guidance during the current year and will have no idea how to plan for paying its income taxes when they are computed.
Let’s take a look at the unsettled prospective tax laws. For almost all tax laws, they are not retroactive, meaning they will not apply to prior periods. Generally, that means none of the rescheduling rules will apply to the 2025 tax year. This points to filing the 2025 return timely, and there is really no reason to delay.
With the rescheduling pointing towards 2026 as the effective tax period, the best planning will be with a good set of books closed on time for 2025.
Every company’s tax situation will have some unique issues. This year in particular, it will be very worthwhile to seek guidance from a qualified tax professional.
© 2026 BTA Corp. All rights reserved. AI-generated.
Upcoming Events
Events Abroad
If your travels take you abroad, we recommend attending these events.
Discover KAZE
Authentic Japanese craftsmanship with this hemp-scented KAZE fan, made in Japan by Kyoto-Asanoha from premium Japanese hemp. Naturally breathable and lightly fragrant, it delivers gentle cooling with a refined, calming scent. Handcrafted using traditional techniques, this sustainable folding fan blends beauty, function, and heritage. Ideal for summer comfort, mindful living, or elegant gifting, it includes a premium bamboo tube and reflects the timeless artistry of Kyoto design. *AD*
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The Situation Report
Humboldt County deputies raided a state-licensed cannabis farm, finding five labor-trafficking victims, seizing 14,000 pounds of illegal processed marijuana, and four firearms. One suspect was arrested; more charges are expected. Read more on KRCR.
22-year-old Begum Mulazimoglu was arrested at Miami International Airport after officers allegedly found more than 131 lbs of marijuana in her checked luggage while she was about to board a flight to London. She’s charged with drug trafficking. Read more on People Magazine.
Abroad
Moroccan police and customs at Tangier Med port foiled a major smuggling attempt, seizing 8.196 tonnes of cannabis resin hidden in a truck bound for Europe, and detaining the 50-year-old Moroccan driver for investigation. Read more on Barlaman Today.
Mumbai Airport’s Air Intelligence Unit seized over 45 kg of hydroponic marijuana from two women arriving from Thailand. Both were arrested under India’s NDPS Act and sent to judicial custody in the drug-trafficking case. Read more on Free Press Journal.
Industry Insights
Ribo Chebeir
Image Provided by: Ribo Chebeir
Founder of ReLeaf Remedy
I came up in the Golden era of Cannabis and later ran a licensed lab in Oklahoma, so I’ve seen firsthand how cooked the legal market is now. It’s overregulated, overtaxed, and built to crush anyone who isn’t a Fortune 500 or MSO. The system literally pressures operators to cut corners just to survive. It’s a structured game where corporations buy influence and tilt the field, while legacy operators get pushed out. What started as a compassion-driven movement has turned into a cold corporate machine. Wall Street runs the table, patients get ignored, and the pioneers who risked everything got left behind.
About Ribo Chebeir
Ribo Chebeir is the founder of ReLeaf Remedy. After 25 years of broad-spectrum industry experience and 10 years developing solutions, he created a family-owned brand focused on high-potency CBD and CBG products. Using clean, lab-tested ingredients, ReLeaf Remedy delivers simple, powerful formulas designed to provide real relief and faster recovery.
Jobs
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About the Principals
Bruce T. Andersen, MBA, MS (Tax), CPA
Managing Director of Cannabis CPA Tax with seven years of cannabis-specific experience, tax services, and strategies provided to several dozen cannabis operators on a national scope.
Thomas W. Andersen, CRTP
Vice President of Field Ops at Cannabis CPA Tax, with 20 years of regulated cannabis industry experience, 18 years of which as an accountant and solutions provider, servicing cannabis operators in all segments of the industry. Read his interview in Fat Nugs Magazine.
RollingStone Culture Council
California NORML Business Member
Global Top 200 Cannabis Accountant
intuit quickbooks ProAdvisor Platinum
Fat Nugs Magazine Official Brand Partner
West Valley-Warner Center Chamber of Commerce
The Cannabis Chamber of Commerce
National Cannabis Industry Association Member
Minority Cannabis Business Association Member
National Association of Cannabis Accounting & Tax Professionals Member
