Florida's Cannabis News Podcast

Florida's Cannabis News Podcast Wednesday, November 25, 2020   Cannabis Taxation—Part V—Congress Can Deter Drug Use and Raise Revenue By Reforming Section 280E   This week, David wraps up Florida’s Cannabis News Podcast’s five part series on Section 280E. In this episode (Part V), we look at what the future holds for Section 280E. Cannabis businesses owners want to pay state and federal taxes. Maintaining a strong working relationship with the IRS legitimizes these businesses, and, in turn, the entire cannabis industry. The current tax regime forces cannabis businesses to either ignore Section 280E on their tax filings, or forego paying taxes altogether. The former forces these businesses to gamble on the IRS overlooking their filing, and the latter evaporates their revenues. Congress can solve this problem in one of two ways: amend the CSA or amend Section 280E.   Here are the highlights:   The primary reason why state-legal cannabis businesses are required to comply with Section 280E is because their produc