Tax court ruling on 280E case could come this month

A ruling from the U.S. Tax Court on whether the 280E provision should not apply to state-licensed marijuana businesses could come before the end of the year.

The case – which was tried in mid-2016 by San Francisco attorney Henry Wykowski – has the potential to reshape the U.S. cannabis industry by making law-abiding MJ companies truly profitable.

“The court previously advised me that we should expect a decision by the end of the year, and that date is approaching,” Wykowski wrote in an email to Marijuana Business Daily.

“Tax court decisions are notoriously slow, so I do not read anything into the delay one way or the other,” he continued. “I’m not interested in a fast decision, I want the right one striking down 280E or providing clarity as to how it should be applied.

“Next year is fine with me as long as we prevail.”

A brief was recently filed in another Tax Court case involving 280E, and there was another in which the Tax Court sided with the IRS over a Colorado dispensary in an October ruling, The Cannabist reported.

But the IRS win was based on the dispensary not providing business records to justify their deductions.

2 comments on “Tax court ruling on 280E case could come this month
  1. jason t on

    It is worth noting that the original sponsor of Section 280E, Pete Stark (D-CA), has publicly called for state-legal cannabis businesses to be exempt from 280E’s reach. Stark says that the IRS’s interpretation of this section of the tax code “undercuts legal medical marijuana dispensaries by preventing them from taking the full range of deductions allowed for other small businesses…[and] punishes the thousands of patients who rely on them for safe, legal, reliable access to medical marijuana as recommended by a doctor.”

    -a former staffer to Congressman Stark

    Source: https://taxrevolution.us/historic-ruling-legal-marijuana-vs-irs-just-around-corner/

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *