News & Analysis as of

Controlled Substances Act IRC Section 280E

Fox Rothschild LLP

Court Upholds CSA, but Cannabis Businesses Still Have Deduction Options

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A recent 1st U.S. Circuit Court of Appeals ruling upheld a lower court decision that the Controlled Substances Act (CSA) does not violate federal law. The decision stems from Canna Provisions’ lawsuit against the government...more

International Cannabis Bar Association...

[Event] Cannabis Law Institute 2024 - July 25th - 26th, Chicago, IL

The International Cannabis Bar Association (INCBA) is thrilled to announce the highly anticipated Cannabis Law Institute 2024 (CLI 2024), the marquee conference dedicated to advancing legal excellence in the rapidly evolving...more

McDermott Will & Emery

IRC Section 280E Will No Longer Apply if Marijuana Is Rescheduled

McDermott Will & Emery on

On May 16, 2024, the US Department of Justice submitted a Notice of Proposed Rulemaking (NPRM) to reschedule marijuana from Schedule I to Schedule III within the Controlled Substances Act....more

Kilpatrick

Cannabis Rescheduling (I to III): Truth v. Fiction

Kilpatrick on

The news has been a flurry of information and excitement following confirmed reports that the U.S. Drug Enforcement Administration (“DEA”) will soon propose a new rule to reschedule cannabis from a Schedule I controlled...more

Foley Hoag LLP

Massachusetts May “Decouple” From Section 280E

Foley Hoag LLP on

Section 280E of the Internal Revenue Code provides that no deduction or credit shall be allowed for any amount paid or incurred in carrying on any trade or business if such trade or business consists of trafficking in...more

Seyfarth Shaw LLP

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

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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

Snell & Wilmer

Retirement Plan Dreams May Go Up in Smoke for Marijuana Companies

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Companies in the medical and recreational marijuana industry continue to face an uphill battle for access to financial services. Although a number of states have legalized the medicinal and/or recreational use of marijuana,...more

Rosenberg Martin Greenberg LLP

Are Owners of Cannabusinesses Eligible for the Qualified Business Income Deduction Under Section 199A?

Section 199A of the Internal Revenue Code, introduced by the Tax Cuts and Jobs Act (“TCJA”), created an opportunity for business owners to substantially lower their income taxes. Subject to many qualifications, beginning in...more

Fox Rothschild LLP

Section 280E Litigation Update: Harsh Results For Resellers

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In the latest Tax Court opinion addressing the application of Section 280E to cannabis businesses there is no good news. However, there is some new guidance. In Patients Mutual Assistance Collective Corp. v. Comm’r, 151...more

Troutman Pepper Locke

Cannabis Industry FAQ

Troutman Pepper Locke on

Can marijuana businesses receive federal copyright protection? Yes. The requirements for registration with the U.S. Copyright Office are that the work is original, creative and fixed in some form of expression. These...more

Fox Rothschild LLP

New Mexico District Court: IRS Can Summons Information Needed to Prove Taxpayer is Subject to Section 280E

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In recent IRS summons litigation, a Federal District Court in New Mexico has ruled that the IRS may seek information from a bank, the New Mexico Department of Health – Medical Cannabis Program, and the Public Service Company...more

Fox Rothschild LLP

Colorado District Court: IRS Enforcement of Section 280E Is Not A Criminal Investigation

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Recently, a Colorado business protested the IRS’ disallowance of their business expenses. The IRS alleges that the taxpayer was a Colorado medical marijuana dispensary to which Section 280E applies, as a result the IRS...more

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