A national association of accountants is asking the Treasury Department and Internal Revenue Service (IRS) to issue updated guidance on federal tax policy for marijuana businesses as the administration’s rescheduling proposal moves through the process.
The American Institute of Certified Public Accountants (AICPA) is also requesting that the federal financial agencies give cannabis companies a chance to correct tax deduction claims they’ve made in anticipation of a potential federal rescheduling decision, after IRS notified stakeholders that it intends to recoup any payouts that might’ve been made prior the government potentially finalizing a rule moving marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA).
In a letter sent to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel on Monday, AICPA said it was important to take steps to clarify the rules—particularly as it concerns the IRS code known as 280E that precludes marijuana businesses from taking federal tax deductions as long as it remains a Schedule I drug—ahead of a possible rescheduling move.
If cannabis is reclassified as a Schedule III drug, as the Justice Department formally proposed in May following a scientific review by the U.S. Department of Health and Human Services (HHS), that would
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