• Eli Hunt

Cannabis Companies to Sue Feds


When you have a medical marijuana card in Virginia, you have the ability to access some of the best and safest natural medication out there. What you can’t do, however, is take that medication on any of the federal land in the Commonwealth!


This conflict between how individual states and the federal government view this natural remedy has been cause for much discussion in recent years, as more and more states move toward the legalization process. With growing momentum behind legalization, some multistate cannabis companies are considering moving against the federal government in the courts. What will these lawsuits entail and how will they affect medical marijuana? Read on!

The Issues

If the lawsuit moves forward, what exactly is at stake? On what grounds would these companies sue the federal government? There are two issues that may come up in these lawsuits: Code 208E of the IRS and the Controlled Substance Act, or CSA.

Code 208E

The 26 U.S. Code Section 280e is a federal statute established by the Internal Revenue Service regarding its relations with businesses deemed “illegal” by the federal government. Under this tax code, the IRS disallows illegal businesses from deducting expenses from their gross income or taking credits when those expenses or credits are related to the “trafficking” of controlled substances.

Multistate cannabis enterprises are, of course, legal operations in the states within which they operate. Unfortunately, in the eyes of the federal government they are not and, as such, can’t claim deductions and credits. This financial burden may well provide these companies with grounds to file a lawsuit against the federal government.

The Controlled Substance Act

A second premise this coalition of multistate operators may consider grounds to sue the feds on relates to the Controlled Substance Act. The CSA defines marijuana as a Schedule I drug, thereby making it subject to stringent controls. The plaintiffs in a potential case against the federal government could argue that prior court rulings regarding the government’s authority over intrastate commerce and so-called “trafficking” should not apply to their companies.

Bridging the Gap Between State and Federal Laws

Efforts have been made at the federal level to bridge the wide gap that exists between state and federal laws when it comes to marijuana. The MORE Act passed in the House of Representatives in 2020, but has yet to receive a hearing in the Senate. This legislation would decriminalize medical marijuana at the federal level, relieving marijuana companies of many of the burdens they currently carry.

What About Medical Marijuana Patients?

The good news for Virginians with medical marijuana cards is that none of this should affect their ability to access and enjoy their natural medicine. Virginia remains steadfast in its support of the medical use of marijuana, including tinctures, edibles, smokable flower, and more. Card holders will be able to benefit from medical marijuana for years to come!

Get Your Medical Marijuana Card With a Certified Doctor Today!


There are certified medical marijuana doctors out there who are ready and willing to help!

Your first step is to set up a consultation with one of these doctors, who can give you the recommendation you need to access this natural product.


Schedule an appointment with an online VA medical marijuana doctor today to start gaining access to safe and legal cannabis products, including tinctures, flower, concentrates and more for your loved one or patient!


 

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At Virginia Marijuana Card, our mission is helping everyone achieve wellness

safely and conveniently through increased access to MMJ. Our focus on

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Call us at (888) 633-5808, or simply book a medical marijuana evaluation to start getting relief you can trust today!


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