On Wednesday, a panel of experts at the Benzinga Cannabis Capital Conference discussed the issue of IRS code 280E, which prohibits the marijuana industry from making federal deductions.

This restriction prevents cannabis companies from benefiting from important tax deductions in their federal records.

A decision or re-planning of cannabis by the federal government could remedy the situation 280E tax number for cannabis companies. This could reduce the tax burden by allowing them to make standard deductions, but this process is complex and can take years. Therefore, experts should consider the implications of 280E when assessing the financial viability of cannabis companies.

Communication, lobbying and outreach strategies to influence the rescheduling process

Andrew KlineCo-Chair of the Cannabis Practice at Perkins Coie, noted that planning is the only way to achieve this President Joe Biden’s visionbut a back-up plan is needed because the Food and Drug Administration (FDA) may not handle the planning.

Kline explained that the backup plan is to classify marijuana as a Class III, IV, or V substance.

Accordingly Kevin Joseph, President of the Joseph Group, Biden’s proposal seems to be the most promising option in terms of time to solve the problem with 280E. He also pointed out that the government launched the process in October as a political strategy to encourage young people to vote and secure an election victory in the spring of 2024.

“We’re fairly confident that the process will play out within the next 12 months and at that point, over time, we will find the strongest case for fixing 280E and changing the balance sheet for everyone in the company,” added Joseph .

Adam GorsSenior Vice President, Corporate Affairs at Columbia Care Inc CCHWF said Biden has gone out of his way to ask the FDA to quickly publicly investigate the issue, which has never been done before.

He stressed that the industry must push for Biden’s administration to know where…