We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Analysis

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for drug traffickers is preventing pot businesses from taking advantage of tax benefits, and some say the law should be repealed or amended.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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.