After the U.S. Supreme Court in June declined to hear arguments in a case between a Denver-based cannabis retailer and the Internal Revenue Service, the company decided to ask the justices to reconsider.
According to Bloomberg Tax, Standing Akimbo marijuana retailer submitted paperwork to the high court last week requesting again that the Supreme Court hear its case.
Standing Akimbo unsuccessfully argued that:
- The IRS exceeded its authority by allegedly investigating drug crimes.
- Their Fourth Amendment privacy rights were being violated.
This case and a parallel legal fight have made clear that the Biden administration is sticking with the IRS’ treatment of state-legal marijuana companies under 280E, the section of the federal tax code that bars legal cannabis operators from claiming standard business tax deductions.