Cannabis News
The IRS is NOT Going to Play Ball with Cannabis Companies on 280E Tax Refund Checks
Published
2 months agoon
By
admin
The Internal Revenue Service (IRS) will persist in pursuing tax payments from marijuana businesses that have taken deductions in anticipation of a potential federal rescheduling, according to a federal agency attorney. If such a reform is implemented, the attorney notes that the IRS could potentially be authorized to seize assets from cannabis companies that fail to meet their tax obligations.
IRS Clarifies Continued Enforcement of 280E Despite Potential Marijuana Rescheduling
IRS Senior Counsel Luke Ortner addressed the possible effects of the Biden administration’s proposal to reschedule marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA) during a fireside chat at the American Institute of Certified Public Accountants (AICPA) cannabis conference in Denver last month.
Although this change in policy would let state-licensed cannabis firms claim federal tax deductions that were previously forbidden by IRS code 280E, several significant corporations have already made such claims, even though the rulemaking process is still in progress.
For instance, in January, multi-state operator Trulieve disclosed it had received $113 million in 280E refunds it had applied for. Similarly, TerrAscend and Ascend Wellness have announced expectations for 280E refunds.
However, the IRS later clarified that the 280E policy remains in effect until a final rule is issued. Ortner reaffirmed this position during last month’s conference, stating that even if rescheduling is implemented, the IRS will “continue to enforce 280E for years prior” to the reform, according to a summary of his remarks by the CPA firm Holland & Hart.
“The IRS’s policy is not to overlook past violations just because the rules have changed moving forward,” the firm paraphrased Ortner during the closed-door session.
An IRS spokesperson confirmed on Monday that the agency consulted with Ortner, who verified the accuracy of Holland & Hart’s summary of his comments.
Legal Challenges to 280E Persist as IRS Reaffirms Strict Interpretation.
Companies and industry stakeholders have put forth various legal arguments to support their 280E tax deduction claims, including asserting that the policy should not apply to businesses whose marijuana operations are entirely intrastate.
IRS Senior Counsel Luke Ortner acknowledged that ongoing court cases may ultimately shape how the IRS handles these matters in the future. However, for the time being, the agency’s stance remains unchanged, and it will seek to reclaim any payouts granted in violation of 280E.
“As of now—unless courts decide otherwise—the IRS interprets section 471(c) narrowly and will maintain its position that it does not provide a loophole to bypass 280E,” Ortner said, according to a summary from the CPA firm Holland & Hart.
The summary also noted that Ortner reassured accountants they would not face penalties for assisting state-licensed cannabis businesses with their tax filings.
Currently, with marijuana classified as a Schedule I federally prohibited substance, the IRS has largely deferred to the Drug Enforcement Administration (DEA) for enforcement and has not aggressively pursued cannabis businesses, regardless of their tax compliance. Ortner noted that this approach could change if marijuana is rescheduled.
According to the summary, the IRS “could seize and sell a cannabis business’s assets—including marijuana inventory—to satisfy unpaid tax liabilities” if rescheduling occurs.
While the IRS has previously seized and auctioned off “vice products” from alcohol and tobacco companies that violated federal tax laws, these products are not classified under the Controlled Substances Act (CSA). Since marijuana would remain federally controlled even if moved to Schedule III, Holland & Hart partner Rachel Gillette suggested it’s unlikely the IRS would seize cannabis products under the new classification.
“Schedule III still classifies marijuana as a controlled substance, just in a different category of the CSA. The IRS might have to wait for full descheduling to seize marijuana assets if ‘illegality’ is the issue,” Gillette said. “However, the IRS could become more comfortable seizing and selling lights, grow equipment, and similar assets under Schedule III. Cannabis products themselves might still be a challenge.”
The rescheduling decision is not final yet. President Joe Biden recently acknowledged this while highlighting the administration’s role in initiating the review that led to the Schedule III recommendation. The DEA is set to hold an administrative hearing in December to gather further input before potentially moving forward with the rulemaking process.
State-Level Relief and Congressional Action Offer Hope for Cannabis Industry Amid IRS Enforcement
Meanwhile, a number of states have put policies into place to offer marijuana companies impacted by the IRS 280E legislation state-level tax relief.
Furthermore, a measure that would change the IRS law and enable state-legal marijuana firms to ultimately claim federal tax deductions that are accessible to other sectors was proposed by Representative Earl Blumenauer (D-OR) in April.
The Internal Revenue Service (IRS) “has offered little tax guidance regarding the application of Section 280E,” according to a 2021 study from the Congressional Research Service (CRS).
In a 2020 update, the IRS clarified that 280E does not “prevent a marijuana industry participant from reducing its gross receipts by the properly calculated cost of goods sold to determine gross income,” even if cannabis firms are not permitted to deduct conventional business expenses.
This modification seems to address a 2020 report from the internal watchdog of the Treasury Department, which blasted the IRS for not giving marijuana business taxpayers enough advice on complying with federal tax laws. The IRS was asked to “develop and publicize specific guidance for the marijuana industry” by the inspector general for tax administration.
IRS 280E TAX CREDITS IN CANNABIS, READ ON…
You may like
-
Star signs and cannabis strains: December 2024 horoscopes
-
Germany: The Conference of Ministers of Justice propose a resolution to amend the Cannabis Act, allowing authoriries to re-access surveillance for illegal cannabis growers and distributors
-
Trump’s Not So Cannabis Friendly Cabinet Picks
-
Perfect Product Pairings for a Broadway Night Out
-
Flying With Cannabis These Holidays? TSA Agents Aren’t Actively Searching Out Your Stash
-
Tips for Traveling With Marijuana This Thanksgiving
Cannabis News
Trump’s Not So Cannabis Friendly Cabinet Picks
Published
1 day agoon
November 30, 2024By
admin
President-elect Donald Trump’s key appointments for roles in the Department of Justice, Centers for Disease Control and Prevention (CDC), and Food and Drug Administration (FDA) have sparked significant concern among cannabis advocates. Pam Bondi, Dave Weldon, and Dr. Marty Makary—Trump’s picks for Attorney General, CDC Director, and FDA Commissioner, respectively—have all expressed strong opposition to marijuana reform. Throw that in with Trump’s VP, JD Vance, saying that all marijuana is laced with Fentanyl now, and you get the point. Their collective stances suggest a potential federal pivot toward stricter enforcement of cannabis laws and a rollback of progress made in marijuana legalization efforts.
Trump’s AG Pick Pam Bondi on Marijuana
President-elect Donald Trump’s reported consideration of former Florida Attorney General Pam Bondi for the role of U.S. Attorney General has drawn attention to her strong conservative stance on a range of issues, including her opposition to marijuana reform. As Florida’s top legal official from 2011 to 2019, Bondi consistently opposed the expansion of marijuana access, including medical cannabis, and worked to limit legalization efforts in the state.
Bondi was a vocal critic of Florida’s 2014 medical marijuana ballot initiative, which sought to legalize cannabis for patients with debilitating conditions. She argued that the measure’s language was too broad and could lead to widespread abuse, effectively turning the state into what she described as the “Wild West” of marijuana use. Her opposition contributed to the initiative falling short of the required 60% voter approval threshold. Although medical marijuana was later approved by Florida voters in 2016, Bondi maintained her cautious stance on the issue, emphasizing the need for strict regulations.
As Attorney General, Bondi also supported law enforcement actions targeting illegal marijuana operations and echoed concerns about cannabis being a potential gateway drug. If appointed as U.S. Attorney General, Bondi’s past actions suggest she could support stricter federal enforcement of marijuana laws, potentially clashing with states that have implemented broader legalization policies. Her approach aligns with a more traditional, anti-reform perspective on cannabis, signaling potential challenges for advocates of marijuana legalization under her leadership.
Trump’s Pick for CDC Director Claims about Marijuana
President-elect Donald Trump’s selection of former Congressman Dave Weldon (R-FL) to lead the Centers for Disease Control and Prevention (CDC) could mark a significant shift in the agency’s stance on marijuana reform. While the CDC’s role in shaping federal cannabis policy is limited, it has recently taken steps to improve public access to information on marijuana use. Weldon, however, is a staunch opponent of reform, with a congressional record that includes voting against measures protecting state medical cannabis programs and supporting resolutions opposing medical marijuana legalization.
During his time in Congress from 1995 to 2009, Weldon repeatedly argued against marijuana’s medical value. In a 2001 House subcommittee hearing, he dismissed medical cannabis as a “veiled attempt to legalize” recreational drug use, accusing advocates of exploiting vulnerable patients. As a physician, he claimed to have seen no legitimate medical indications for marijuana and suggested that smoking the drug could lead to lung cancer. Weldon also criticized the lack of global scientific research validating cannabis’s medical potential, arguing that its absence undermined claims of its efficacy.
Weldon has also supported the gateway drug theory, asserting that marijuana use often precedes harder drug abuse despite the difficulty of proving causation. He maintained that interviews with heroin users indicate many began with cannabis, which he cited as evidence of its gateway effect. If confirmed, Weldon’s leadership could steer the CDC toward a more conservative approach to cannabis, potentially reversing recent efforts to provide balanced information on the drug’s uses and risks.
Trump’s FDA Pick Thinks Marijuana Is a Drug That Causes Heart And Mental Health Problems
President-elect Donald Trump’s choice for Food and Drug Administration (FDA) commissioner, Dr Marty Makary, has expressed skepticism about medical marijuana, citing concerns about its links to cardiovascular problems and mental health risks in youth. He has also promoted the gateway drug theory, suggesting marijuana use can lead to the consumption of more dangerous substances. As the FDA plays a crucial role in shaping federal cannabis policy, Makary’s stance could influence the agency’s approach under the incoming administration.
Makary, a surgeon and medical commentator, has argued that modern cannabis is far more potent than in the past, raising potential health risks, particularly for adolescents. Speaking on the mindbodygreen podcast, he highlighted research suggesting a significant increase in the risk of psychosis later in life for teens who use marijuana. While he clarified that he was not making a statement about legalization itself, he emphasized that describing marijuana as entirely safe is inconsistent with scientific evidence. These views are also detailed in his book, Blind Spots, where he challenges claims that marijuana is harmless or not a gateway drug.
Additionally, Makary has disputed economic arguments for legalization, particularly the idea that it undermines illicit drug trafficking. He has contended that organized crime groups, including cartels and Chinese criminal organizations, continue to dominate marijuana sales in states like California, Oklahoma, and Kentucky. Makary further criticized these groups for exploiting workers in what he described as “a modern form of slavery on U.S. soil.” His appointment suggests a potentially more cautious and critical approach to marijuana policy within the FDA.
HOW TRUMP IS MAKING YOU PAY MORE FOR CANNABIS, READ ON..
Cannabis News
Safe to Fly with Marijuana Now? -The DEA is Banned from Random Airport Bag Searches after DOJ Ruling
Published
2 days agoon
November 29, 2024By
admin
In a significant move that has sent ripples through law enforcement and civil rights circles alike, the Drug Enforcement Administration (DEA) has been banned from conducting random searches at airports. This decision follows a scathing report from the Justice Department that unveiled a troubling pattern of misconduct within the agency. The findings not only highlight issues of corruption but also raise serious concerns about civil liberties and the ethical conduct of law enforcement officials.
Background of the DEA’s Airport Searches
The DEA has long been involved in drug interdiction efforts at airports, often collaborating with other law enforcement agencies to combat drug trafficking. Their operations typically involve random searches of passengers and their belongings, ostensibly to deter drug smuggling and ensure public safety. However, these practices have come under scrutiny in recent years, with critics arguing that they infringe on individual rights and disproportionately target specific demographics.
The Justice Department Report
The Justice Department’s report, which was the result of an extensive investigation, revealed alarming details about the DEA’s airport search practices. Key findings included:
-
Racial Profiling: One of the most troubling aspects of the report was evidence suggesting that DEA agents engaged in racial profiling. The investigation found that certain groups were disproportionately targeted based on characteristics such as race or ethnicity, leading to accusations of systemic bias within the agency.
-
Targeting Last-Minute Travelers: The investigation revealed a pattern where individuals who purchased tickets shortly before departure were more likely to be searched. This tactic raised alarms about potential violations of civil rights, as it suggested that agents were using arbitrary criteria to determine who merited further scrutiny.
Implications for Civil Liberties
The findings of the Justice Department report have profound implications for civil liberties in the United States. Random searches at airports are already a contentious issue, with many arguing that they violate Fourth Amendment protections against unreasonable searches and seizures. The additional revelations regarding racial profiling and inadequate documentation further exacerbate these concerns.
Erosion of Trust in Law Enforcement
One of the most significant consequences of this situation is the erosion of trust between communities and law enforcement agencies. When individuals feel they are being targeted based on their race or other arbitrary factors, it creates an environment of fear and suspicion. This distrust can hinder effective policing, as community cooperation is essential for successful crime prevention and resolution.
Legal Challenges Ahead
In light of these findings, legal challenges against the DEA’s practices are likely to emerge. Civil rights organizations may seek to hold the agency accountable for its actions, potentially leading to lawsuits that could reshape how law enforcement operates at airports and beyond. Such legal battles could set important precedents regarding the balance between public safety and individual rights.
The Response from Law Enforcement Agencies
In response to the Justice Department’s findings, several law enforcement agencies have begun reevaluating their own practices related to airport security and drug interdiction efforts. The DEA has announced an internal review aimed at addressing the issues raised in the report, but skepticism remains regarding whether meaningful change will occur.
Calls for Reform
Advocates for reform are calling for comprehensive changes within the DEA and other agencies involved in airport security. Suggested reforms include:
-
Enhanced Training: Law enforcement personnel should receive training focused on implicit bias, cultural sensitivity, and constitutional rights to ensure they conduct searches fairly and without prejudice.
-
Transparency Initiatives: Increasing transparency around search practices can help rebuild trust between law enforcement agencies and communities. Public reporting on search statistics, including demographic data, could provide insight into potential biases.
The Future of Airport Security
The unfolding situation regarding the DEA’s ban on random airport searches raises critical questions about the future of airport security in America. As concerns about terrorism and drug trafficking intensify, the challenge of balancing safety with civil liberties becomes increasingly complex. The Justice Department’s report, which revealed significant issues such as corruption and racial profiling within the DEA, underscores the urgent need for reform in how security measures are implemented at airports. While advanced technologies, including AI and biometric systems, promise to enhance security protocols, they also raise important questions about privacy rights and potential biases in their application. The reliance on personal data for threat detection necessitates stringent safeguards to protect individual privacy while ensuring effective security measures.Moving forward, it is essential for policymakers, law enforcement agencies, and communities to engage in collaborative discussions aimed at creating transparent and accountable airport security practices. This dialogue must prioritize both effective threat detection and the protection of civil liberties to foster public trust. Implementing risk-based approaches that allow for tailored screening procedures can help address safety concerns without infringing on individual rights. Additionally, ongoing training for law enforcement personnel on implicit bias and constitutional rights will be crucial in ensuring that security measures are applied fairly. As we navigate these challenges, a balanced approach that respects civil liberties while enhancing airport security will be vital in shaping a safer and more just environment for all travelers.
Technological Innovations
One potential avenue for improving airport security without infringing on individual rights is through technological innovations. Enhanced screening technologies, such as advanced imaging systems or artificial intelligence-based analytics, could reduce reliance on random searches while still effectively identifying threats.
Community Engagement
Another important aspect of reforming airport security practices is community engagement. Law enforcement agencies must work collaboratively with community members to develop policies that prioritize safety while respecting individual rights. Engaging with diverse communities can help build trust and ensure that security measures are equitable.
Conclusion
The ban on random airport searches by the DEA represents a crucial turning point in the ongoing discourse about law enforcement practices in the United States. Following a comprehensive report from the Justice Department that exposed serious issues related to corruption, racial profiling, and insufficient oversight within this key drug enforcement agency, it has become imperative for policymakers, law enforcement officials, and community members to engage in meaningful discussions on how to effectively balance public safety with civil liberties. Emphasizing transparency, accountability, and community involvement will be essential in striving for a more equitable system that honors individual rights while addressing public safety concerns. This situation serves as a stark reminder of the need for vigilance in safeguarding our freedoms and ensuring that law enforcement operates ethically and responsibly. As reforms are proposed and enacted, it is vital to prioritize civil liberties in conversations surrounding law enforcement practices at airports and beyond.
FLY WITH WEED? READ ON…
Cannabis News
A Blend of Science, Culture, and Opportunity
Published
3 days agoon
November 28, 2024By
admin
Exploring the Cannabis Revolution: A Blend of Science, Culture, and Opportunity
The global cannabis industry has been undergoing a dramatic transformation in recent years. Once shrouded in controversy, cannabis is now at the forefront of discussions surrounding health, wellness, and economic growth. From medical breakthroughs to recreational trends, the cannabis plant has proven its versatility and potential in numerous domains. This burgeoning industry is reshaping societal perspectives and creating opportunities that were once deemed improbable.
The Evolution of Cannabis Use and Acceptance
Cannabis has been used for centuries in various cultures for its medicinal and recreational properties. However, the stigma surrounding it, largely influenced by 20th-century prohibition laws, significantly hindered its mainstream acceptance. Today, the narrative has shifted dramatically. Research studies highlight cannabis’s therapeutic potential in managing chronic pain, epilepsy, anxiety, and other health conditions. This growing body of evidence has played a crucial role in reshaping public opinion and government policies worldwide.
As legalization spreads across countries and states, cannabis has transitioned from an illicit substance to a lucrative industry. With a focus on quality control, ethical practices, and education, cannabis entrepreneurs are working diligently to ensure their products meet high standards while dispelling lingering misconceptions.
Diverse Opportunities in Online Spaces
The cannabis boom is mirrored in the digital realm, where e-commerce platforms and online communities thrive. Cannabis.net, for instance, exemplifies how digital platforms connect users with dispensaries, educational resources, and like-minded enthusiasts. These platforms are instrumental in reducing the knowledge gap and advocating for cannabis’s many benefits.
Interestingly, the online world has become a melting pot for diverse industries. For example, online casinos are capitalizing on the digital shift, offering unique experiences to players worldwide. Many of these platforms, known for offering fast withdrawals, are aligning with modern consumer expectations of convenience and efficiency. This focus on seamless transactions and user satisfaction resonates with cannabis consumers who value similar qualities in their purchasing experiences. Both sectors reflect the broader trend of digitization and consumer-centric innovation.
The Economic Boom of Legal Cannabis
Legal cannabis markets have catalyzed significant economic benefits, from job creation to tax revenue. Industries related to cultivation, manufacturing, and retail are flourishing. This economic impact extends beyond the direct cannabis market, fueling ancillary industries such as technology, marketing, and legal services.
Moreover, cannabis tourism has emerged as a dynamic sector, with destinations like Amsterdam and Denver becoming hotspots for cannabis enthusiasts. Events like cannabis expos and educational tours not only boost local economies but also foster global conversations around responsible use and regulation.
Cannabis and Wellness: A Holistic Approach
Cannabis’s role in health and wellness cannot be overstated. Beyond its medicinal properties, many are turning to cannabis products such as CBD oils, tinctures, and edibles as part of their holistic lifestyle. These products are often marketed for stress relief, improved sleep, and enhanced focus, making them popular among diverse age groups.
Additionally, cannabis is influencing the beauty and skincare industries, with products containing cannabinoids like CBD claiming to offer anti-inflammatory and anti-aging benefits. Such developments underscore cannabis’s versatility and its ability to integrate into everyday life seamlessly.
Challenges and the Road Ahead
While the cannabis industry is undoubtedly promising, it faces several challenges. Regulatory inconsistencies, lack of standardized testing, and lingering stigmas remain significant hurdles. Additionally, global legalization is progressing at varying paces, creating disparities in market accessibility and innovation.
On the business front, competition is fierce. Entrepreneurs and companies must focus on differentiation, quality, and education to thrive in this dynamic landscape. Transparency in operations and a commitment to social responsibility are also critical factors in building trust with consumers and stakeholders.
Conclusion
The cannabis industry is an exciting frontier, blending tradition with innovation. As science continues to unravel the plant’s potential, and as societal attitudes evolve, cannabis is poised to become a staple in medicine, wellness, and recreation. Platforms like Cannabis.net are pivotal in this journey, offering a gateway for education, advocacy, and connection.
Whether it’s through physical dispensaries or online marketplaces, the cannabis revolution represents a broader cultural shift towards acceptance and exploration. The interplay between industries, such as cannabis and digital gaming, highlights the interconnectedness of today’s global market. Together, they reflect the values of convenience, innovation, and a consumer-first approach—a trend that is likely to shape the future across multiple sectors.
CANNABIS REVOLUTIONS, READ ON…
Star signs and cannabis strains: December 2024 horoscopes
Germany: The Conference of Ministers of Justice propose a resolution to amend the Cannabis Act, allowing authoriries to re-access surveillance for illegal cannabis growers and distributors
Trump’s Not So Cannabis Friendly Cabinet Picks
Perfect Product Pairings for a Broadway Night Out
Flying With Cannabis These Holidays? TSA Agents Aren’t Actively Searching Out Your Stash
Tips for Traveling With Marijuana This Thanksgiving
Should You Mix Up Online And In-store Shopping This Weekend
Find Verilife in Maryland
Get a taste of the high life with Daylite & Bango
Safe to Fly with Marijuana Now? -The DEA is Banned from Random Airport Bag Searches after DOJ Ruling
Distressed Cannabis Business Takeaways – Canna Law Blog™
United States: Alex Malyshev And Melinda Fellner Discuss The Intersection Of Tax And Cannabis In New Video Series – Part VI: Licensing (Video)
What you Need to Know
Drug Testing for Marijuana – The Joint Blog
NCIA Write About Their Equity Scholarship Program
It has been a wild news week – here’s how CBD and weed can help you relax
Cannabis, alcohol firm SNDL loses CA$372.4 million in 2022
A new April 20 cannabis contest includes a $40,000 purse
Your Go-To Source for Cannabis Logos and Designs
UArizona launches online cannabis compliance online course
Trending
-
Cannabis News2 years ago
Distressed Cannabis Business Takeaways – Canna Law Blog™
-
One-Hit Wonders2 years ago
United States: Alex Malyshev And Melinda Fellner Discuss The Intersection Of Tax And Cannabis In New Video Series – Part VI: Licensing (Video)
-
Cannabis 1012 years ago
What you Need to Know
-
drug testing12 months ago
Drug Testing for Marijuana – The Joint Blog
-
Education2 years ago
NCIA Write About Their Equity Scholarship Program
-
Cannabis2 years ago
It has been a wild news week – here’s how CBD and weed can help you relax
-
Marijuana Business Daily2 years ago
Cannabis, alcohol firm SNDL loses CA$372.4 million in 2022
-
California2 years ago
A new April 20 cannabis contest includes a $40,000 purse