SCOTUS Declines to Hear Challenge to Anti-Cannabis Tax Provision

Section 280E was written with to preclude drug dealers from taking business deductions but has used mostly against the legal marijuana industry.


2 min read


This story originally appeared on Marijuana Business Daily

Marijuana businesses hoping to see the end of onerous 280E tax provisions were dealt a setback by the nation’s highest court last week.

The U.S. Supreme Court declined to review a petition brought by a Colorado medical cannabis dispensary challenging the authority of the Internal Revenue Service. Alpenglow Botanicals, based in Breckenridge, argued in its petition to the high court that Section 280E of the federal tax code doesn’t empower the IRS to investigate and rule that a marijuana business has violated federal criminal drug laws.

The federal government responded that 280E specifies that no tax deduction or credit should be allowed for any expense paid or incurred in carrying out a business that “consists of trafficking in controlled substances.”

Related: How Amazon and Entrepreneurs Can Pay Zero Federal Income Tax, and Do So Legally

Marijuana is listed as a Schedule 1 drug under the Controlled Substances Act. Both the U.S. District Court in Colorado and the 10th Circuit Court of Appeals in Denver had affirmed the IRS ruling.

Alpenglow had claimed a variety of business deductions that the IRS determined were prohibited by 280E. The denial of the deductions resulted in Alpenglow owners Charles and Justin Williams owing a total of $53,094 to the IRS, according to court documents.

After the bill was paid, Alpenglow filed refund claims and started on the road of challenging in court the application of 280E.

Alpenglow’s attorney didn’t immediately respond to Marijuana Business Daily‘s request for comment.

Related: Colorado Has Collected More Than $1 Billion in Marijuana Tax Revenue

Source

more recommended stories

  • Most U.S. Cannabis Cultivators Choose to Compete on Quality Rather Than Cost (Chart)

    Many wholesale growers are focusing on.

  • How to Build a Community Around Your Brand

    July 19, 2019 2 min read.

  • 5 Science-Backed Ways to Boost Your Creativity

    These tips could revolutionize your approach.

  • Use This Green Beret Method to Find Out if Someone Is Trustworthy

    Thinking about a new partnership? Check.

  • 9 Airbnb Rental Tax Deductions You Can Take for Your Vacation Properties

    Maximize your short-term rental tax savings.

  • The Unheard Voices of the Cannabis Social Equity Movement

    It’s fallen to the legal cannabis.

  • How to Make Money in the Freight Brokering Business

    One expert’s insights into taking advantage.

  • Jay-Z Gets Into the Pot Game (60-Second Video)

    Your weekly rundown of the biggest.

  • 3 Female Leaders Share Their Secrets for Starting and Growing a Business

    These lessons are a reminder that.

  • 6 Easy Steps to Making Connections That Make Money and Create Happiness

    Transform your career and make money.

  • This Female Founder Fought to Stay in the Game And She Just Raised $3 Million in Funding from Serena Williams, Mark Cuban and Arlan Hamilton

    July 15, 2019 5 min read.

  • Tips and Tools for Making Progress Toward Important Goals

    Attend this free webinar and learn.

  • How Digital Marketing Changed the 2016 Presidential Race and Will Change 2020’s.

    As an entrepreneur, there are certain.

  • NFL’s Calvin Johnson and Rob Sims Talk Cannabis: It’s ‘A God-Given Gift’

    Two battered former players who never.

  • 3 Ways AI Can Help Businesses Improve Customer Relations

    The power of AI can lead.

  • 4 Essentials for Complying With the New Data Privacy Regulations

    Consumers need reassurance and protection from.

  • Why This Entrepreneur Says to Check Your Ego at the Door

    July 13, 2019 1 min read.

  • CNBC’s Tim Seymour Talks About Cannabis M&A, Private Vs. Public Markets

    Cannabis is good investment, unless you.

  • 3 Areas Where Enterprise-Focused Startups Are Poised to Make an Economic Impact

    How do you improve efficiency by.

  • What Really Causes Depression?

    Here’s what every entrepreneur needs to.

  • The Unexpected Philosophy That Led Me to My Biggest Closed Deals Ever

    Forget the conventional sales wisdom; if.

  • How This Founder Overcame Challenges He Never Saw Coming

    This entrepreneur and Yale dropout hoped.

  • How to Make Promising Opportunities Come to You

    Grow your business and personal passion.

  • Sacrifice Your Way to Your Dream Job in Sports

    This former mailroom worker talks about.

  • Jay-Z Gets Into the Pot Game

    The legendary rapper/entrepreneur got 99 problems.

  • Fitness Professional Jay Dang on Why Confidence Is the Key to Success

    You have to earn it. July.

  • WarnerMedia’s HBO Max Launches in 2020, and It’s Bringing ‘Friends’

    The streaming service will come loaded.

  • 6 Quotes on Business and Life From Billionaire and 2-Time Presidential Candidate Ross Perot

    The philanthropist died on Tuesday at.

  • Work-Life Balance Is Essential for Entrepreneurs

    If your life is out of.

  • How This Entrepreneur Built a Million-Dollar Business by Focusing on These 3 Strategies

    July 8, 2019 3 min read.

  • USA! Americans Spent $400M on Cannabis for Fourth of July

    Legal marijuana is not yet as.

  • What If Renting an Apartment Were as Easy as Booking an Airbnb?

    AI startup Block wants to make.