Would enforcing payment and accepting money from a federally illegal business cause you to be caught up in RICO, CCE and conspiracy charges that would put you away for decades? For you yes – For the government a big NO.
Multistate marijuana company Trulieve Cannabis Corp. is currently seeking a federal tax refund amounting to $143 million. The company firmly maintains that it does not owe the taxes it had diligently paid over a span of three years.
“This determination is supported by legal interpretations that challenge the company’s tax liability under Section 280E of the Internal Revenue Code,” Florida-based Trulieve announced through a recent news release.
Section 280E poses a significant obstacle for state-legal marijuana companies, as it prohibits them from deducting their standard business expenses. Consequently, these companies are burdened with substantially increased tax bills.
26 U.S. Code § 280E – Expenditures in connection with the illegal sale of drugs
No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.
More Posts
A visit with a kick
POW - Right in the Kisser. Businesses watch out for the lawA Pennsylvania-based convenience store chain was hit with a lawsuit by the Biden administration at the same time the president stopped by one of their locations on the campaign trail. Sheetz is being accused...
Woman tried to board flight with 56 pounds of marijuana
Woman allowed airport police to check her luggage, had name tag on bags, according to reportsBefore a 21-year-old Memphis woman could board an United Airlines flight, Memphis International Airport Police found 56 pounds of marijuana in her luggage, according to...
Oregon governor signs a bill recriminalizing drug possession
Oregon governor signs a bill recriminalizing drug possession into lawOn April 1, 2024, Oregon Governor Tina Kotek signed House Bill 4002 into law, effectively recriminalizing the possession of small amounts of certain controlled substances. This legislation marks a...
John Sinclair, the inspiration for Ann Arbor’s Hash Bash, dead at 82
John Sinclair, the poet whose imprisonment for marijuana inspired the start of Ann Arbor’s long-running annual Hash Bash in the 1970s, has died. He was 82.Sinclair's passing occurred on Tuesday, April 2, 2024, at a Detroit hospital, merely four days prior to his...
Disciplining Student’s Speech Violates First Amendment
You go girl!!!A public high school was found to have violated the First Amendment when it suspended a student from her cheerleading team for using profane speech off campus. Mahanoy Area Sch Dist v BL, No 20-255, ___ US ___ (June 23, 2021). The U.S. Supreme Court has...
Marijuana reform advocates demand apology from Kamala Harris
So SorryMarijuana reform advocates demand an apology from Kamala Harris for locking up pot smokers and slam her 'political hypocrisy' for now saying no one should 'go to jail for smoking weed!'Marijuana reform advocates are urging Vice President Kamala Harris to issue...
Federal Agency Smack Down on a Michigan Credit Union’s Cannabis Banking
Apple to ApplesAn independent federal agency has recently cited a Michigan credit union for non-compliance with regulations regarding banking services for the marijuana industry. Consequently, the financial institution has been directed to halt the opening of new...
Cannabis cash transactions aren’t suspicious says IRS
Following The MoneyLarge cash transactions by marijuana businesses should not be automatically flagged as suspicious, as per the latest IRS guidance. The tax agency's guidance aims to provide clarity on the federal Bank Secrecy Act, which mandates businesses,...
Our Kids are Dying of Drug Overdoses
THE KIDS AREN’T ALRIGHT, THEY’RE DYING OF DRUG OVERDOSESFrom May 2022 to May 2023, the Centers for Disease Control and Prevention reported an alarming 37 percent increase in American lives lost due to overdoses, totaling over 112,000 fatalities. This staggering surge...
Rescheduling Marijuana Would Be a Threat to Public Health
Kevin Sabet of Smart Approaches to Marijuana says policy makers need to learn from their mistakes with hemp when considering marijuana rescheduling. It’s rare for policymakers to get a preview of the consequences of pending policies, but the descheduling of...
