The Department of Justice has announced the rescheduling of medical marijuana and encouraged the Treasury Secretary to consider allowing state-licensed medical marijuana businesses to amend prior-year tax returns affected by 280E. Treasury has announced that guidance is forthcoming, but no one knows when it will arrive or how far it will go.
The window to amend is closing. Businesses impacted by 280E have a limited window to claim refunds or reduce prior-year tax liabilities. Waiting for IRS guidance may mean losing the opportunity to claim refunds for years that would otherwise be available.
This presentation will explain why cannabis businesses should consider amending their returns now rather than waiting for IRS guidance. We will discuss the current status of medical marijuana rescheduling, the unresolved position of adult-use cannabis, the risk of expiring refund statutes, and how operators can claim their refunds before the window closes.
Learning Objectives:
- Outline the current status of cannabis rescheduling and how it affects the various state-regulated cannabis operators.
- Identify the difference between medical marijuana and adult-use cannabis in the current rescheduling discussion.
- Understand why Treasury and IRS guidance and how it will impact the cannabis industry.
- Evaluate the risks and benefits of amending prior-year tax returns before formal guidance is issued.
- Recognize how expiring statutes of limitation can limit or eliminate refund opportunities for cannabis businesses.
