So while state-compliant marijuana businesses can hardly be considered “traffickers,” federal tax law still applies as if they were. “With [28] states and the District of Columbia now allowing some form of legal marijuana, 280E is applied to state-regulated cannabis businesses more often than it is to the types of illegal drug dealers that the provision was intended to penalize,” according to the National Cannabis Industry Association.

Read more: http://www.laweekly.com/news/how-cannabis-businesses-can-deal-with-drug-trafficking-tax-code-280e-7748875