Report: IRS official says rescheduling could bring new 280E enforcement tool | How to buy Skittles Moonrock online

A lawyer from the Internal Revenue Service recently told a group in Denver of accountants that despite the ongoing marijuana redistribution process – which would nullify the section 280E of the federal tax code applicable to state-legal cannabis businesses – the current tax policy was still in place. The law will be enforced The rescheduling process will continue until the rescheduling has been completed. The attorney warned that the regulatory move would likely give the agency a new tool with which to pursue cannabis companies who are in default on their taxes.

According to Marijuana Moment’s Luke Ortner, IRS Senior Counsel, delivered the news in remarks made to the American Institute of Certified Public Accountants (AICPA) in August. Ortner implied that moves made by multistate operators such as Trulieve Cannabis Corp. to Get 280E refunds It was premature to say that.

The IRS has issued a message that isn’t exactly new. Similar warning Ortner said in July that the agency will not simply close the books on debts from previous years that are still outstanding by marijuana companies that are legalized in their state. The implies that nullification of the 280E will likely not be retroactive, but only for future tax year.

“The IRS policy is to not look the other way, because things have changed moving forward,” Ortner said. According to a summary shared with Marijuana Moment of his remarks. “For now, unless courts rule otherwise, the IRS will interpret section 471(c), narrowly. It will defend its position stating that it does not mean to circumvent the application of 280E.”

Ortner said that the IRS often deferred enforcement of past due federal taxes to the Drug Enforcement Administration. However, once the rescheduling is complete, the IRS will play a more prominent role in collecting past-due federal tax liabilities from marijuana businesses.

Ortner pointed out that the IRS had not previously seized cannabis inventory and sold it to settle tax debts of marijuana companies, as they would do with mainstream companies. He said that this could very well change in the future.

According to Ortner’s summary, the IRS “could sell cannabis inventory and other assets of a cannabis business to satisfy outstanding taxes.”

The DEA has not specified a specific date for the rescheduling. Hearing to be held on Dec. 2 On rulemaking related effort, which will push a decision to 2025 at the latest.

John Schroyer

John Schroyer is a journalist who has been working since 2006. He initially focused on politics and covered the 2012 Colorado campaign for marijuana legalization. He began writing about the cannabis industry in 2014 after attending the first legal cannabis sales that took place on New Year’s Day of that year, in Denver. John has covered the subsequent marijuana market launches that took place in California and Illinois. He has written about all aspects of the marijuana trade and was part the team who built the cannabis industry’s first ever trade show, MJBizCon. He joined Green Market Report as of 2022.