Cannabis Rescheduling and 280E: How Businesses Should Prepare

IRS Rejects MSO 280E Liabilities Challenge

The Trump administration’s continued inaction on its promise to push ahead with the highly anticipated cannabis rescheduling project is now presenting some real-world issues for many of the sector’s largest players.  In anticipation of the punitive 280E tax provision being scrapped, several major US Multi-State Operators (MSOs) moved to restructure their tax positions to reflect the incoming reform.  Earlier this month, the Internal Revenue Serv…

Cannabis Rescheduling and 280E: How Businesses Should Prepare

The recent presidential executive order directing federal agencies to expedite the process for reclassifying cannabis marks a significant moment for the industry. For operators, investors, and advisors who have been navigating regulatory uncertainty for years, federally reclassifying the plant could bring major benefits. But it is important to separate what the executive order actually did from what many hope it will do. Key insights Reschedul…