A tax code provision that bars marijuana companies from business tax breaks violates the 16th Amendment of the U.S. Constitution, an Oakland, Calif. cannabis company told the Ninth Circuit.
In a brief filed Tuesday, Harborside Inc. argued against tax code Section 280E, and said that the IRS is demanding more in taxes than their taxable income, due to the fact they are unable to deduct business expenses because of 280E.
Harborside’s challenge to the code section, in a case where it is appealing a U.S. Tax Court ruling, is the latest example of questions surrounding the federal provision…
