The IRS is reminding marijuana companies that taxes under Section 280E of the Internal Revenue Code still must be paid because of the drug’s Schedule 1 status.
“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,” the agency said Friday in a post on its website.
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Section 280E prevents marijuana operators from deducting typical business expenses, such as payroll and marketing, on federal tax returns.
Although the law has not changed, some taxpayers are filing amended returns, prompting the IRS’ notification.
“The grounds for filing such claims vary, but these claims are not valid,” the IRS said.
If the Biden administration’s October 2022 recommendation to
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