February 23, 2012

Medical Marijuana Pros, Cannabis Business Leaders Focus on Crucial MMJ Industry Tax Issue

Medical pot updates, cannabis dispensary news and marijuana developments

Several prominent medical cannabis professionals have banded together to form a new group that will focus on one of the most pressing issues facing the marijuana industry: Taxes.

The newly created 280E Reform Team is set to launch a nationwide campaign aimed at ratcheting up the pressure on the Internal Revenues Service, which the group says is trying to “turn back the clock” on medical cannabis by denying MMJ dispensaries the ability to deduct standard business expenses from their federal taxes.

“These denials result in astronomical back tax bills for the affected dispensaries that, if not changed, threaten to destroy the financial viability of every medical cannabis dispensary in the country—thereby ending safe and affordable access to cannabis for legally qualified patients,” the 280E Reform Team wrote in a press release about its efforts.

The group is named after a section of the tax code that the IRS uses as justification for its position. Under 280E, businesses that are engaged in the “trafficking” of controlled substances cannot claim tax deductions for expenses such as payroll and rent. It was crafted nearly three decades ago, long before states started approving the use and distribution of medical marijuana.

Some well-known names in the cannabis industry are behind the effort, including Don Duncan, the co-founder of Americans for Safe Access; Amir Daliri, co-founder of the California Cannabis Association and president of CannLobby; and Steve DeAngelo of Harborside Health Center, a California medical marijuana dispensary.

The group is pushing for changes in the tax code that would allow dispensaries and other MMJ companies to deduct the same expenses that every other type of business in America can claim on their federal tax returns – similar to the type of legislation a Congressman introduced last year that would exempt medical marijuana businesses from 280E.

“We are going to challenge this tax code to make sure that patients all over America have the ability to safely fill their health care needs with safe access from medical cannabis providers who are operating clearly with state laws,” Henry Wykowski, the team’s lead tax attorney, said in the release. “This is a public safety issue and a healthcare right.”

The 280E Reform Team will hold a workshop entitled “The IRS is Coming! Are You Ready?” from 1 to 6 p.m. this Saturday in the main ballroom at Just Dance, 2500 Embarcadero, in Oakland, California; and from 1 to 6 p.m. on March 10 at the Courtyard Marriot, 925 Westlake Ave. N, in Seattle. You can register online at http://www.280Ereform.org or call 206-466-1766.

The group also hosts an open phone conference every Friday at noon pacific time to provide updates on its progress. You can access the calls by dialing 209-647-1000 and entering the password 154639.

 

 

 

 

Marijuana dispensaries

Marijuana tax

Cannabis tax

Reform marijuana

California marijuana dispensary

 

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

Minnesota MMJ Companies Raise $30M

The two companies selected to grow and dispense medical cannabis in Minnesota have raised a [click to continue...]

Canadian MMJ Crackdown On the Way?

Medical marijuana businesses in Vancouver, British Columbia, may soon be in the city’s crosshairs. The [click to continue...]

Seed-to-Sale Tracking Trend Continues With New Mexico

seed to sale

An increasing number of states are requiring cannabis companies to track every plant from seed [click to continue...]

Oregon Catering to Cash-Carrying Cannabis Businesses

The agency in charge of overseeing Oregon’s recreational marijuana industry is planning to add a [click to continue...]

Bill Would Prevent Feds From Targeting Compliant MJ Companies

Cannabis business owners harassed by federal prosecutors despite operating legally in their respective states would [click to continue...]

Florida Medical Marijuana Measures Fizzle Out

FloridaMedicalMarijuana

An attempt to legalize medical marijuana in Florida this year via the state Legislature is [click to continue...]

Ohio Group Claims Sabotage in Legalization Efforts

An Ohio organization pushing for medical marijuana legalization in the state says a stronger, more [click to continue...]

California Industry Association Head Faces Suit to Close Dispensary

A dispensary run by the president of the California Cannabis Industry Association has come under [click to continue...]

Oregon Expects 2,000 Applicants for Recreational MJ Licenses

Oregonoutline

Oregon officials in charge of regulating the state’s up-and-coming recreational marijuana industry expect roughly 2,000 [click to continue...]

Marijuana Testing Lab Seeks $5 Million for International Expansion

One of the first commercial cannabis testing labs in the United States is seeking $5 [click to continue...]

Anti-Marijuana DEA Chief to Resign

The head of the Drug Enforcement Agency will resign next month, prompting cheers from cannabis [click to continue...]

Las Vegas Dispensary With ‘Snowball’s Chance’ Moves Forward

Vegasphoto

The owners of a planned Las Vegas dispensary held a ceremonial groundbreaking on Monday despite [click to continue...]

Another Poll Finds Strong Support for Marijuana Legalization

Yet another national poll has revealed that attitudes towards legalizing cannabis have grown more tolerant [click to continue...]

60% Plunge in Washington Recreational MJ Prices

Washington State cultivators must be hurting. The average price of a gram of retail cannabis [click to continue...]

Marijuana Business Daily