Cannabis Regulatory Update: Legalization on Hold, New Tax Guidance
Congressional representatives have delayed voting on a bill that would federally legalize cannabis until after the November elections.
In an at least temporary blow to reform advocates, the legislation was not included in a weekly floor schedule posted by the office of Majority Leader Steny Hoyer (D-MD) this week, though he made a commitment that the body would bring up the bill sometime “later this autumn,” presumably after the November elections. This comes two weeks after Hoyer initially said a vote was being planned for the week of September 21.
“The Marijuana Opportunity Reinvestment and Expungement (MORE)Act remains a critical component of House Democrats’ plan for addressing systemic racism and advancing criminal justice reform, and we are committed to bringing it to the floor for a vote before the end of the year,” Hoyer said. “Right now, the House is focused relentlessly on securing agreement to stave off a damaging government shutdown and continuing to do its job addressing the COVID-19 pandemic. Later this autumn, the House will pass the MORE Act with strong support as yet another crucial step toward making our justice system fair for all Americans.”
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In other cannabis news, the IRS has released updated guidance on tax policy for the cannabis industry, including instructions on how s businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash.
Because cannabis remains federally illegal, the industry is largely deprived of tax benefits extended to operators in other markets, but it still has an obligation to pay taxes and properly report transactions.
“A key component in promoting the highest degree of voluntary compliance on the part of taxpayers is helping them understand and meet their tax responsibilities while also enforcing the law with integrity and fairness to all,” the IRS stated in a memo. “Businesses that traffic marijuana in contravention of federal or state law are subject to the limitations” in IRS code.
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