The U.S. Supreme Court Denies Certiorari in Cannabis Case

On June 24, 2019, the U.S. Supreme Court denied petition for a writ of certiorari to review the decision of the U.S. Court of Appeals for the Tenth Circuit in Alpenglow Botanicals, LLC v. United States, 894 F.3d 1187 (10th Cir. 2018). Alpenglow Botanicals, LLC (“Alpenglow”) is a medical marijuana business, which operates legally in the state of Colorado. After an audit of Alpenglow’s 2010, 2011 and 2012 tax returns, the Internal Revenue Service (the “IRS”) assessed a deficiency against Alpenglow by denying a variety of its business deductions under section 280E of the Internal Revenue Code (the “Code”) and by concluding that Alpenglow had “committed the crime of trafficking in a controlled substance in violation of the CSA.” Section 280E disallows business deductions and credits for businesses engaging in trafficking of a Schedule I or II controlled substances. The federal government claims...