• videocam Live Webinar with Live Q&A
  • calendar_month July 17, 2026 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Tax Impact of Cannabis as Schedule III: Section 280E Relief, Transition Rules, Effective Date

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About the Course

Introduction

This webinar will provide a technical analysis of the federal tax consequences of the federal government's recent reclassification of cannabis to a Schedule III controlled substance. Our panel of cannabis tax practitioners and compliance advisers will walk through how this change interacts with IRC §280E, transition timing, expense apportionment for multi-activity businesses, and what steps businesses and tax advisers should consider taking now to take advantage of this reclassification.

Description

In April 2026, the Department of Justice reclassified certain FDA-approved products and other cannabis substances as Schedule III controlled substances. Prior to this change, cannabis businesses were treated as trafficking in a Schedule I controlled substance for federal tax purposes, resulting in the disallowance of ordinary and necessary business deductions under IRC §280E. In many cases, this has resulted in businesses being taxed on gross, rather than net, income. Following rescheduling to Schedule III for covered activities, qualifying medical cannabis operations may no longer be subject to §280E for those activities, raising critical transition questions for the 2026 tax year. 

Listen as our panel of federal tax professionals explains planning opportunities, state responses to §280E relief, and the potential broadening of this relief to include recreational cannabis. 

Presented By

Judith Heimbürger
Partner
gunnercooke LLP

Ms. Heimbürger is an experienced lawyer specializing in advising clients in the life sciences sector. She works with national and international companies as well as investors across pharmaceuticals, medical cannabis, medical devices, biotechnology and diagnostics, supporting them throughout the entire product and business development lifecycle. Ms. Heimbürger  also has significant experience advising on and leading cross-border M&A transactions, joint ventures and strategic partnerships in the life sciences sector. In addition, she advises on compliance matters, pharmaceutical advertising law, collaborations with physicians and pharmacists, and a wide range of regulatory issues relating to medical cannabis, medicinal products and medical devices.

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Patrick McCormick
Partner
gunnercooke LLP

Mr. McCormick is an attorney with fifteen years of experience, focusing his practice on international taxation. He represents both business and individual clients on all aspects of United States international tax rules, both from an income tax and estate/gift tax perspective. Having previously served as a partner at large law firms, an accounting firm, and a boutique tax law firm, Mr. McCormick's client exposures have covered every conceivable area of American-side international tax matters. He has worked with clients located in over 130 countries on American tax considerations of multinational activities, cultivating specialized knowledge in every area of United States international tax rules. Mr. McCormick's practice focus has facilitated an unparalleled expertise in the field; he is trusted by clients and advisors around the world to obtain optimal results on international tax matters. Mr. McCormick is licensed to practice in Pennsylvania and New Jersey. and regularly assists clients (particularly multinationals) with estate planning needs in these jurisdictions.

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Jacob Prudhomme
Partner
gunnercooke LLP

Mr. Prudhomme is a commercial and financial services lawyer who advises entrepreneurs across a broad range of industries, from privately held regional companies to leading digital-asset firms operating in regulated markets. His work spans operational matters, contracts, transactions, disputes, and regulatory issues. A former SEC Senior Counsel, Mr. Prudhomme also serves as a specialist adviser to broker-dealers, investment advisers, banks, and trading platforms. He brings more than twenty years of experience across government, capital markets, and consulting.

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Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Date + Time

  • event

    Friday, July 17, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. Legislative and regulatory landscape

II. Reclassification to Schedule III

A. §280E limitations

B. Covered and non-covered products

C. Effective date

III. Treasury/IRS guidance priorities

A. Guidance to be issued

B. Multi-activity businesses

C. Transition rules concept

IV. Implementation

A. Allocating expenses

B. Handling mixed operations

C. Returns and claims strategies

VI. Potential expansion of covered categories

The panel will cover these and other critical issues

  • The impact of Schedule III reclassification on §280E deductibility
  • Transition and allocation considerations for businesses with mixed medical and non‑medical activities
  • State conformity and decoupling issues that may limit or delay expected tax relief
  • Key planning and documentation steps businesses should implement

Learning Objectives

After attending this program, participants will be able to:

  • Identify the effective date of the designation change of certain cannabis activities to Schedule III controlled substances
  • Determine how the reclassification of certain cannabis activities to Schedule III impacts the application of IRC §280E 
  • Ascertain transition considerations for the year 2026
  • Decide how multi-activity businesses should document apportionment of relative expenses
  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.


BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .