Excessive and punitive British taxes were abhorrent to our country’s founders. Today, excessive and punitive U.S. taxes are being applied to our country’s medical cannabis providers. It’s called IRS Code Section 280E, and we’re here to reform it.
All businesses, even nonprofit dispensaries, pay taxes to the IRS each year. But there’s a disconnect between federal and state laws called IRS Code Section 280E. Designed to fight drug trafficking, the sweeping rule was put in place during the Reagan Administration, long before medical cannabis laws were passed in 16 states and the District of Columbia.
Legitimate medical cannabis businesses want and expect to pay their fair share of taxes. In addition to federal taxes, dispensaries also pay state and/or local taxes. However, the IRS is now using 280E to stop medical cannabis businesses from making standard business deductions, which leaves them with a crushing tax bill they cannot afford. In a growing number of audits, the IRS is leaving dispensaries no recourse but to shut down – or move to the underground economy.
This punitive and outdated tax policy cannot stand. That’s why the 280E National Reform Team seeks volunteers to help educate people about the IRS campaign against medical cannabis providers. To develop a winning court strategy, we’re also asking supporters to contribute to the 280E legal defense fund.
We invite you to follow us on Facebook and Twitter, or sign up for one of our 280E Reform Tax Seminars. You can attend the National Conference Call and hear our progress by dialing 209-647-1000, password: 154639. Mark your calendar: The next 280E Reform conference call is April 5, 2013, at noon PST.