The IRS has issued a reminder that the 280E tax penalty on marijuana businesses remains in effect until the rescheduling of cannabis is finalized. Despite President Biden's proposed changes to reclassify marijuana, the IRS has warned taxpayers in a statement on Friday that filing amended returns to claim refunds is not valid. Some marijuana enthusiasts have already filed tax returns seeking refunds, mistakenly believing that the drug's reclassification has been completed. The IRS emphasized that the law regarding marijuana's classification has not changed and that taxpayers are not entitled to refunds based on the current classification. The Biden administration's proposed rule change to reclassify marijuana is still in its early stages and has not yet been finalized.
The Biden Justice Department last month published a notice of proposed rulemaking saying it will work on rewriting the classification of marijuana. But until a final rule is published, it remains a Schedule I controlled substance, the IRS said. https://t.co/cTiW0oC23Y
“The law with respect to the schedule or classification of marijuana has not changed. Taxpayers seeking a refund of taxes paid related to Internal Revenue Code Section 280E by filing amended returns are not entitled to a refund or payment." https://t.co/cTiW0oC23Y
The IRS said it seems some in the pot community have concluded that Mr. Biden’s looming changes have taken marijuana out of the prohibition. https://t.co/cTiW0oC23Y
“Although the law has not changed, some taxpayers are filing amended returns. The grounds for filing such claims vary, but these claims are not valid,” the IRS said. https://t.co/cTiW0oC23Y
The IRS revealed the refund requests in a statement Friday warning taxpayers not to try it. Mr. Biden’s changes are still in their infancy and aren’t finalized yet, the tax agency said. https://t.co/cTiW0oC23Y
Some marijuana enthusiasts have filed tax returns trying to get money back from the IRS, saying they are entitled to it now that President Biden is moving to reclassify the drug as less dangerous. https://t.co/AxeyXBxMLG
Slow Your Roll: IRS Reminds Taxpayers That Cannabis Has Not Yet Been Reclassified https://t.co/5fGEd8CUnx
Potheads seeking tax refunds over Biden's proposed marijuana rules change https://t.co/eI1b386GID
NEW: The IRS published a reminder that the 280E tax penalty on marijuana business still applies until rescheduling is finalized—adding that some cannabis companies are already filing amended returns to get refunds but that "these claims are not valid." https://t.co/vFetNZ5jXa https://t.co/ueIdX9Xx5Q
Tax Policy In The Biden Administration https://t.co/NFIPd5GbNs https://t.co/Ui1ZW4HC7d