Press Treasury and the IRS to issue swift, clear guidance on federal income tax treatment for state-legal cannabis businesses after cannabis rescheduling, and coordinate with federal partners to communicate that guidance widely.

Congressman Steven Horsford (NV-04) and Congressman Steve Cohen (TN-09) today led a letter to Treasury Secretary Scott Bessent and IRS Chief Executive Officer Frank Bisignano urging the Administration to provide clear, timely guidance for state-legal cannabis businesses following the rescheduling of certain cannabis products. The lawmakers specifically called for clarity around federal income tax treatment and emphasized the need to work with federal partners, including the Small Business Administration, to ensure this guidance is widely communicated to businesses navigating the transition.

Horsford co-led a letter urging Treasury and the IRS to provide clear, timely tax guidance for state-legal cannabis businesses and coordinate with federal partners to communicate it.

Horsford, Cohen Demand Clarity for Cannabis Businesses Navigating Federal Tax Uncertainty | Congressman Steven Horsford
primary · press_release · model gpt-5.5

DEA noticed a hearing on proposed marijuana rescheduling beginning June 29, 2026, recessing July 3 and reconvening July 6, with conclusion no later than July 15, 2026.

During the June 7-July 6 lookback, the rescheduling process was still in hearing proceedings, not final. That leaves the promised post-rescheduling Treasury/IRS guidance unresolved as of July 6, 2026.

unresolved same_term

Federal Register: Schedules of Controlled Substances: Rescheduling of Marijuana
secondary · model gpt-5.5 · confidence 93%

DEA withdrew the prior notice of hearing, terminated the pending hearing proceedings, and said the proceedings had remained stayed since January 13, 2025.

This shows the rescheduling track was delayed and restarted rather than completed. It supports an unresolved status, though it is not evidence of Horsford taking oversight action.

unresolved same_term

Federal Register: Schedules of Controlled Substances: Rescheduling of Marijuana; Withdrawal
secondary · model gpt-5.5 · confidence 91%

The order said the May 2024 proposed marijuana rescheduling rule had nearly 43,000 public comments and was awaiting an administrative law hearing; it directed the Attorney General to complete rescheduling to Schedule III expeditiously.

The executive action created pressure to finish rescheduling, but it did not itself provide Treasury/IRS tax guidance or show Horsford coordinating that guidance.

unresolved same_term

Federal Register: Executive Order 14370, Increasing Medical Marijuana and Cannabidiol Research
secondary · model gpt-5.5 · confidence 88%

Section 280E disallows deductions or credits for businesses trafficking in controlled substances within Schedule I or II when prohibited by federal or state law.

The statute explains why Schedule III rescheduling would affect cannabis tax treatment. It does not show that Treasury or IRS issued the promised clear guidance after rescheduling.

unresolved same_term

26 U.S.C. 280E: Expenditures in connection with the illegal sale of drugs
secondary · model gpt-5.5 · confidence 90%

MarketWatch reported that IRS said cannabis businesses were not entitled to Section 280E refunds because marijuana's schedule or classification had not changed.

This is the most concrete sourced IRS position found on 280E and rescheduling: before any final rescheduling, IRS maintained existing 280E treatment. It is not evidence of later Horsford-backed guidance.

unresolved unknown

MarketWatch: IRS leaves no wiggle room on higher taxes for legal cannabis companies
secondary · model gpt-5.5 · confidence 78%