Cannabis Businesses Still Waiting on IRS Word After Rescheduling

Missouri cannabis operators had reason to cheer in April, when federal officials moved medical marijuana into a less restrictive category under federal law. The relief hasn't fully arrived, though. Businesses are now waiting on guidance from the IRS that would spell out how the new classification changes what they can do on their taxes, and until it comes, many owners are left guessing. For years, a section of the tax code known as 280E has barred companies that traffic in Schedule I and II substances from deducting ordinary business expenses. That has left cannabis businesses with some of the heaviest effective tax burdens in any legal industry. Rescheduling raises hope that those limits will ease, but the details are still open. Businesses want to know how and when the change applies, and whether it covers only medical sales or reaches further. One person quoted in the reporting said operators are very anxious to see whether relief is on the way and whether the IRS will issue direction that makes clear what they can do. Without that direction, owners and accountants face hard calls. They can file as if deductions are now allowed and risk penalties later, or keep paying at the old rate and possibly leave money on the table. Either choice affects cash flow, hiring, expansion plans and the prices customers see at the register. The situation shows how a headline policy change can take months to matter in practice, because the paperwork and agency guidance have to catch up before businesses can plan around it.