News & Analysis as of

Tax Deductions Controlled Substances Cannabis-Related Businesses (CRBs)

Fox Rothschild LLP

High Time for Cannabis Businesses to Start Tax Planning

Fox Rothschild LLP on

Cannabis businesses should prepare now for certain tax benefits since the Drug Enforcement Administration’s (DEA) recent recommendation to reschedule cannabis from a Schedule I controlled substance to a Schedule III...more

Harris Beach Murtha PLLC

Can Cannabis Companies Deduct Business Expenses? Two Operators Say Yes

Federal tax relief could be on the horizon for New York cannabis companies with two multistate cannabis operators claiming to have found the secret to escaping the tax obligations imposed by Section 280E of the Internal...more

Bricker Graydon LLP

The Possible Demise of 280E in the World of Cannabis

Bricker Graydon LLP on

The Internal Revenue Code, 26 U.S. Code §280E, is the bane of any business associated with the “trafficking” of Schedule I or Schedule II controlled substances....more

Husch Blackwell LLP

Decoupling of Section 280E from State Tax Codes

Husch Blackwell LLP on

On May 18, 2022, in a 153-2 vote, the Massachusetts House of Representatives voted to amend the state’s tax code to provide income tax relief for Massachusetts cannabis businesses. ...more

Freeman Law

Section 280E and The Taxation of Cannabis Businesses

Freeman Law on

Section 280E of the Internal Revenue Code prohibits taxpayers who are engaged in the business of trafficking certain controlled substances (including, most notably, marijuana) from deducting typical business expenses...more

Holland & Knight LLP

IRS Continues to Audit and Litigate Against Cannabis Businesses

Holland & Knight LLP on

As Congress continues to deliberate the federal legalization of marijuana, the cannabis industry continues to face scrutiny from the IRS under Section 280E of the Internal Revenue Code (Code). Enacted in 1982 in response to a...more

Farrell Fritz, P.C.

The Biden Presidency: How Will Cannabis Business Be Taxed?

Farrell Fritz, P.C. on

Wither the Weed? It has been one month since Mr. Biden’s inauguration as President of the United States. Among the many questions being asked of President Biden is whether he will seek the decriminalization of cannabis....more

Partridge Snow & Hahn LLP

Tax Court Confirms That Cannabis Businesses Cannot Take Advantage of Certain Tax Breaks Other Businesses Use

One of the most frustrating issues facing the US’s burgeoning cannabis industry has been the inequitable tax treatment that cannabis businesses face as compared to other industries. The IRS’s guidance for one section of the...more

Seyfarth Shaw LLP

Section 280E – Why Are We Still Having This Discussion?

Seyfarth Shaw LLP on

If you are in the cannabis industry, you should already know Section 280E of the Internal Revenue Code. It consists of only one sentence...more

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