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On Friday, June 28, 2024, Cannabis stocks were pounded by two different adverse events.
Biden’s disastrous performance in the first debate raised fears of a new Trump administration and the actions that he could take affecting cannabis. We view this as essentially a non-event. S3 is moving down the pike on auto-pilot without any active management from the president. We also doubt that Trump, if elected, would choose to interfere with the rights of States to run their cannabis industries.
The market was likely influenced more strongly by an IRS filing IR-2024-177 on June 28, which said:
Until a final federal rule is published, the Internal Revenue Service today reminded taxpayers that marijuana remains a Schedule I controlled substance and is subject to the limitations of the Internal Revenue Code.
The law with respect to the schedule or classification of marijuana has not changed. Taxpayers seeking a refund of taxes paid related to Internal Revenue Code Section 280E by filing amended returns are not entitled to a refund or payment.
Although the law has not changed, some taxpayers are filing amended returns. The grounds for filing such claims vary, but these claims are not valid. The IRS is taking steps to address these claims.
The
