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IRS reminds cannabis industry that 280E “still applies.”
It looks like some cannabis businesses are trying to get a head start on one of the most immediate outcomes that would follow if cannabis is moved to Schedule III: some tax relief.
For context: Section 280E – which, in short, does not allow cannabis businesses to make typical business expenses – only applies to Schedule I and Schedule II.
“Although the law has not changed, some taxpayers are filing amended returns,” the IRS wrote in a notice posted late last week. “The grounds for filing such claims vary, but these claims are not valid. The IRS is taking steps to address these claims.”
You can read the full IRS notice here.
DOT: Safety-sensitive cannabis testing won’t change after rescheduling.
Dept. of Transportation Secretary Pete Buttigieg has reassured truckers — who have been concerned about road safety after rescheduling — that he believes that the DOT will maintain their authority to continue their cannabis testing program.
The statements came during a House Committee on Transportation & Infrastructure hearing late last week, when U.S.Rep. Rick Crawford asked him about letters from the American Trucking Associations, which Cannabis Wire covered, seeking clarity on the policy issue.
“Our understanding of the rescheduling of marijuana from Schedule I to Schedule III is that it would not alter DOT’s marijuana testing requirements with respect to the regulated community,” Buttigieg said.
He continued, “For private individuals who are performing safety-sensitive functions, subject to drug testing, marijuana is identified by name, not by reference to one of those classes… So even if it moves in its classification, we do not believe that that would have a direct impact on that authority.”
Chris Spear, president & CEO of the American Trucking Associations, thanked Crawford for highlighting the issue during a Congressional hearing.
“If the trucking industry’s ability to conduct drug testing for marijuana use were to be restricted, a heightened risk of impaired drivers would threaten our nation’s roadways,” Spear said in a statement.
“DOT and ATA share the goals of achieving zero highway fatalities and ensuring the commercial driving workforce is qualified to safely operate, which is why we are committed to partnering with DOT to mitigate harmful impacts caused by the potential reclassification of marijuana.”
