Bloomberg Tax
Dec. 3, 2019, 5:00 PMUpdated: Dec. 3, 2019, 8:46 PM

Cannabis Company Keeps Fighting IRS View of Drug-War Era Law (1)

Lydia O'Neal
Lydia O'Neal

A cannabis company has appealed its case against the IRS at the Ninth Circuit in an effort to soften the blow of a policy that can push state-legal marijuana businesses’ tax rates to upwards of 70%.

Harborside Inc., which is based in Oakland, Calif., is challenging the government’s view of tax code Section 280E, which bars those “trafficking” in Schedule I and II substances from taking ordinary deductions afforded to other businesses. The company on Dec. 3 filed its appeal of the U.S. Tax Court’s 2018 ruling in Patients Mutual Assistance Collective Corp. v. Commissioner.

At issue ...

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