Harborside Appeals for 280E Relief

California-based Harborside Health Center, one of the country’s largest dispensaries, is challenging an industry-hated section of the tax code in federal court.

Last week, the company appealed a 2019 U.S. Tax Court ruling that found it had underpaid its taxes by $11M between 2007 and 2012. The discrepancy relates to section 280E of the federal tax code which denies tax deductions and credits to businesses dealing in illegal drugs. The cannabis industry has long fought 280E since it blocks deductions that other businesses can take and . . .