The Internal Revenue Service (IRS) is advising marijuana companies that they still cannot take federal tax deductions for business expenses that afforded to other traditional industries unless the administration finalizes a rule to reschedule cannabis.
In a press release on Friday, IRS clarified that its policy, known as 280E, still applies as the federal government moves through the process of potentially moving marijuana from Scheduled I to Schedule III of the Controlled Substances Act (CSA).
"Until a final federal rule is published, the Internal Revenue Service today reminded taxpayers that marijuana remains a Schedule I controlled substance and is subject to the limitations of Internal Revenue Code," it said.
"The law with respect to the schedule or classification of marijuana has not changed," the advisory continued. "Taxpayers seeking a refund of taxes paid related to Internal Revenue Code Section 280E by filing amended returns are not entitled to a refund or payment."
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