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
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
