Cannabis Business Tax Issues
Overview
Marijuana is classified as a Schedule I drug under the Controlled Substances Act (CSA) and as such is subject to IRC 280E, denies a deduction for ordinary business expenses. Also, according to federal law, banks and financial services companies cannot knowingly establish accounts with businesses that sell drugs that are illegal under Federal law.
Related IRS Publications and Forms
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IRC Sec 280E
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Schedule C
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Form 1120-S
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Form 1065
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Chief Counsel (20150411)