The U.S. Tax Court again ruled that Section 280E of the Internal Revenue Service tax code is constitutional and cannabis companies aren’t entitled to common business deductions.
The Tax Court concluded that marijuana remains a Schedule 1 controlled substance, and thus, under current federal law, the IRS is correct in disallowing standard tax breaks for cannabis businesses.The ruling centered on a plea from Northern California Small Business Assistants, which received a tax bill and penalty from the IRS for $1.5 million for the 2012 tax year, Bloomberg reported.
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