9th Circ. Rejects Revisiting Cannabis Cos.’ $2M Tax Fight
Law360 (August 28, 2020, 7:23 PM EDT) — The Ninth Circuit on Friday declined to reconsider its earlier decision that two California-based cannabis companies could not challenge a $2 million tax bill from the Internal Revenue Service because they filed their U.S. Tax Court petitions one day late.
A three-judge panel unanimously rejected a rehearing petition by Organic Cannabis Foundation LLC and Northern California Small Business Assistants Inc., which argued the appellate court should have considered whether the deadline to file their petitions with the Tax Court could have been extended because of extenuating circumstances. A panel in June affirmed the Tax Court’s rejection of the petition.