The IRS is reminding the public that, for the time being, marijuana remains a Schedule 1 controlled substance. Although the U.S. Justice Dept. published a notice of proposed rulemaking with the Federal Register on May 21, 2024 to initiate formal rescheduling of marijuana, no final rule has been published. Until that happens, businesses that sell marijuana products (even if the sales are legal in their jurisdictions) won’t receive federal refunds or payments under Code Sec. 280E. That provision disallows tax deductions or credits for any amount paid or incurred in a business that trades in Schedule I or II controlled substances. Stay tuned!
Our Blog 