Some marijuana industry enthusiasts attempted to claim tax refunds based on potential federal reclassification under President Biden, but the IRS clarified that current laws prohibiting deductions for marijuana businesses remain unchanged until official reclassification rules are finalized.
Anticipation Grows – Marijuana Industry Awaits Federal Updates on Tax and Regulation
According to The Washington Times, some marijuana industry supporters tried to get tax refunds after President Biden hinted at making the marijuana industry less restricted. However, the IRS rejected these attempts, explaining that current laws still block such refunds under Section 280E. Despite Biden’s plans to reclassify the marijuana industry, it remains a Schedule I substance federally until official rules change.
Section 280E, set up in the 1980s, stops businesses dealing with illegal substances like the marijuana industry from deducting expenses on federal taxes. The IRS cautioned against filing for refunds prematurely, saying the marijuana industry’s legal status hasn’t changed yet. While Biden’s Justice Department is considering reclassification, concrete changes need final approval, keeping the legal situation unclear.
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1 in 5: IRS Dismisses Marijuana Industry Tax Refund Claims – Leaving Industry in Limbo! (PHOTO: Forbes)
Industry Awaits Federal Guidance on Marijuana Industry Taxation and Regulation
Now, people in the marijuana industry and supporters are waiting for more updates from Biden’s administration and Congress. They hope for new federal rules that could affect how the marijuana industry is taxed and regulated in states where it’s legal. This highlights ongoing debates and challenges in aligning federal and state laws on the marijuana industry across the United States.
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