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Tax Code’s Drug Trafficking Provision Seen As Out Of Touch

Law360, Los Angeles (February 14, 2018, 5:22 PM EST) -- As more states allow the legal sale and use of marijuana, a decades-old section of the tax code that forbids deductions or credits for drug traffickers is preventing pot businesses from taking advantage of tax benefits, and some say the law should be repealed or amended.

At issue is Internal Revenue Code § 280E, which prohibits tax deductions or credits for companies whose trade or business consists of trafficking of controlled substances prohibited by federal or state law.

The statute was passed in the early 1980s...
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