Webinar Replay: Internal Revenue Code 280E And Tax Efficiency

Yesterday afternoon, the Washington Post and other sources reported that President Trump is expected to issue an executive order directing federal agencies to reclassify marijuana...

Alexander G. Malyshev and Sarah H. Ganley examine the final order rescheduling cannabis from Schedule I to Schedule III of the Controlled Substances Act. The analysis clarifies that this rescheduling applies specifically to medical cannabis and does not constitute federal legalization of cannabis.

The House has passed a short-term funding bill postponing the federal ban on hemp-derived THC products from November 12th to December 11th. With comprehensive legislation unlikely before the new deadline and competing interests from cannabis sellers, alcohol producers, and state regulators creating policy gridlock, the future of intoxicating hemp products remains uncertain as midterm elections approach.

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, the DEA decided to pause its consideration of adult-use marijuana rescheduling.

The landscape surrounding Section 280E of the Internal Revenue Code continues to evolve with President Trump's Executive Order on medical marijuana rescheduling, advancing litigation in New Mexico Top Organics v. Commissioner, and shifting regulatory signals. Cannabis taxpayers face critical decisions about taking "non-280E" positions on their tax returns while the IRS maintains its enforcement stance and the U.S. Tax Court case addressing common arguments remains pending.

On November 12, 2025 the President signed the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (H.R. 5371) into law.

Multiple news sources reported today that the DEA will be recommending rescheduling cannabis to a Schedule III drug.

On April 23, 2026, U.S. Attorney General Todd Blanche signed a final order moving FDA-approved marijuana drug products and state-licensed medical cannabis from Schedule I to Schedule III of the Controlled Substances Act.

If you are a security clearance holder, or looking to obtain one in the near future, you may be aware that reclassification of marijuana (cannabis, weed, pot) from a Schedule I drug to a Schedule III...

Politico and Bloomberg both reported today that the U.S. Department of Health and Human Services (HHS) is officially recommending that marijuana be moved to Schedule III...