How can you help?

The 280E National Reform Defense Team needs more volunteers to motivate, educate and inspire the public about this issue. You can also donate to the legal defense fund. We seek to raise three million dollars by December 25th. This deadline is imposed upon us by the IRS. You can attend the weekly National Conference Call and hear firsthand the progress and challenges in front of us by dialing 209.647.1000 (PW 154639) each and every Friday at 12:00 PM PST. You can stay current by going to our website: www.280eReform.org.

MERGENCY
Legal Strategy Some of the country's best tax attorneys are working this issue, led by San Fransisco's Henry Wykowski, tax counsel in the CHAMP case (the only 280E precedent), all strategies are carefully being considered and evaluated. Mr Wykowski currently represents 20 plus businesses that have fallen victim to the IRS 280E attack. Our search for the strongest viable candidate to be at the forefront of our plan is underway.
In the meantime, and parallel to the legal strategy being defined, we are working our educational and outreach programs to begin collecting funds.
Within reach, if we join together. We know that a successful effort in this regard will be neither easy nor inexpensive, but if enough of us join together, a decisive answer to the 280E problem is within reach!

The power to tax is the power to destroy.

John G. Marshall, U.S. Chief Justice (180135)

PATIENT ACCESS
www.280EReform.org info@280EReform.org facebook.com/280EReform twitter.com/280EReform

PROTECTING

The IRS is planning to circumvent medical cannabis laws across the nation. Join the ght to keep safe access alive.

Why is it endangering the entire medical cannabis industry?

About Us
We are patients, business owners, publishers, college students, accounting professionals, government organizers, activists and leaders in the national cannabis industry that share a grave concern about the future of patients access to safe medical cannabis, if there isnt a Federal reform to the outdated 280E IRS tax code.
What is the 280E IRS Tax Code?

Legitimate cannabis businesses want to pay taxes. We want to contribute back to the communities in which we belong. However, recently, the IRS is enforcing the IRS Code section 280E to deny medical cannabis businesses from making those standard operating deductions. This means if a business is unable to make deductions, a tax is being applied to the total amount of money the business has taken in that year. Once a business has paid for all of its employees, rent, medicine etcand if they truly are operating as a nonprofitthere is no money left to pay the taxes. That money is gone. So in effect, the IRS is leaving the businesses no recourse but to shut downor to move to the underground economy.
Why does it need to be reformed?

of the California dispensaries who were the first to be audited. So far only a few have made the news, but you can be assured the IRS war on cannabis continues as new businesses continue to be served notices that they too are now being audited.
Who is really being threatened by 280E anyway?

Enacted in 1982, the year that President Ronald Reagan declared a War on The IRS has interpreted this statement Drugs, section 280E of the federal tax and decided that all cannabis businesses code explicitly bans any tax deductions are illegal and are cited as drug related to trafficking in controlled trafcking. This code denies any cannabis business to deduct normal business substances. This tax code was put expenses such as rent, payroll and health into effect prior to the insurance for employees. legalization of medical cannabis in California and the other 16 states and 280E IRS TAX CODE: the District of Columbia. No deduction or credit shall be allowed for any It has remained intact and amount paid or incurred during the taxable in conflict with state laws. year in carrying on any trade or business if such
trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.
- Cornell University of Law

The situation is clear; the Federal Government is using the 280E tax code as the weapon in which to close down medical cannabis businesses. Their hope is that the American public will not understand the implications and will think that it doesnt impact them. They also count on Americans to remain silent while the IRS continues to put the businesses out of business, subsequently taking jobs and taxes out of the local economy. 280E is outdated. This tax code was put in place prior to the states legalizing It derives its justification from medical cannabis remaining a Schedule I narcotic, therefore people who are helping patients must be described as drug trafficking and will be denied normal business deductions. The attention to this matter really came to a peak when IRS audit results were published in October 2011 for a number

If all legitimate cannabis businesses are shut down, the impact will be felt across state and local communities. Not only do these businesses assist patients in obtaining safe medical cannabis, they pay rents, they pay local and state taxes which in turn fund parks, roads, hospitals, etc., they have employees, they pay utilities, etc. If the IRS is successful, tens of thousands of well paying jobs will be destroyed, millions of patients will be placed in danger, and millions of dollars in tax revenue will be eliminated. The government would like you to believe its just a few businesses. However, the IRS started with the audits in California which became public in October, 2011. Their list continues to grow. And it is safe to assume the war will wage onto other states. We must rally. While the battle is waging in California and California has always been at the forefront of the movement, they cannot do it alone. This time, they need the help from all of us to effectively wage the battle.

We need to stand up and be counted!

PATIENT ACCESS

PROTECTING

John G. Marshall, Chief Justice of the United States (180135)

How can you help?