IRS Asks Court to Dismiss Harborside’s 280E Appeal

A California dispensary that appealed an $11M tax bill by questioning the constitutionality of industry-hated Internal Revenue Code Section 280E should have raised those constitutional concerns in Tax Court, lawyers representing the Internal Revenue Service told a federal judge.

Harborside Health Center took its fight to the U.S. Court of Appeals for the Ninth Circuit after a U.S. Tax Court ruled that the company owed the extra $11M after improperly claiming business deductions from 2007 to 2012. Because marijuana is listed as a Schedule I drug in the . . .