A petition for review was filed with the U.S. Supreme Court in a case involving a Colorado marijuana dispensary. Earlier this year, the U.S. Appeals Court for the 10th Circuit ruled against the dispensary, stating that an IRS summons seeking information about the business was properly granted. The case stems from the fact that marijuana businesses can’t claim business tax breaks on their federal tax returns. While many states have legalized marijuana use, it’s illegal under the federal Controlled Substances Act. Therefore, under Sec. 280E of the tax code, deductions or credits for amounts paid or incurred in carrying on a marijuana business are disallowed. (Standing Akimbo, Inc., 1/27/23)
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