280E Updates: Rescheduling, Amending Returns, and Why Timing Matters

The Department of Justice has announced the rescheduling of medical marijuana and encouraged the Treasury Secretary to consider allowing state-licensed medical marijuana businesses to amend prior-year tax returns affected by IRC §280E. Treasury has indicated that guidance is forthcoming, but it remains unclear when that guidance will arrive or which cannabis businesses and tax years it will cover. Meanwhile, statutes of limitation continue to expire. Cannabis businesses have a limited window to claim refunds or reduce prior-year tax liabilities, and waiting for IRS guidance could cause operators to lose refund opportunities that are currently available. This presentation will examine why cannabis businesses should consider amending prior-year returns before formal guidance is issued. We will discuss the current status of medical marijuana rescheduling, the unresolved treatment of adult-use cannabis, the risks associated with expiring statutes, and the options available to operators seeking to preserve their refunds before the window closes.