Marijuana companies tax liabilities hit $2 billion as IRS waits

NewsUnited States

By Spliff NewsroomPublished 15 November 2026 at 03:02·3 min read

Five major US cannabis companies reported about $2 billion in combined uncertain tax liabilities, according to filings covered on 14 November 2026. The firms are waiting for formal IRS guidance on how federal rescheduling affects their tax position.

The combined figure comes from the latest filings of Trulieve, Curaleaf, Verano, Ascend Wellness and Vireo Growth, The Marijuana Herald reports. The companies disagree on when they can book the benefits of federal rescheduling.

What changed in April 2026

The Department of Justice moved cannabis covered by state medical licences, along with FDA-approved products, from Schedule I to Schedule III of the Controlled Substances Act. The order took effect on 28 April. It removed eligible medical cannabis activity from the reach of Section 280E of the federal tax code.

On 23 April, the Treasury Department and the IRS announced that upcoming guidance would include a transition rule. Eligible businesses could then claim the reclassification benefit for their whole tax year. The formal guidance has not been published.

Why Section 280E matters

Section 280E bars businesses dealing in Schedule I or II substances from claiming most federal deductions and credits. For cannabis operators, that meant ordinary costs such as rent, advertising and staff pay could not be deducted. Effective tax rates ended up far higher than in other sectors.

Five companies, five readings

• Trulieve recognises relief for all of 2026.
• Curaleaf recognises it from 28 April.
• Vireo recognises it from 23 April.

Curaleaf’s management concluded that the April IRS announcement is not official guidance. In its view, it does not give enough technical support under accounting standards to book the benefits.

The numbers, company by company

Trulieve reported net uncertain tax liabilities of $625.4 million at 30 September 2026. About $610 million relates to its challenge over Section 280E. Accrued interest stands at $104.8 million, of which $100.9 million is tied to that position. Separately, the IRS proposed $38.1 million in penalties against some subsidiaries, not included in the uncertain liabilities.

Curaleaf reported $476.1 million in its latest SEC filing, down $55.4 million from the end of 2025. The IRS is examining some of its returns for 2020 to 2024. Curaleaf warned that extra taxes, interest and penalties could far exceed its reserves if its 280E position is not upheld.

Verano reported $410.9 million in uncertain tax positions, up from $378.3 million at the end of 2025. It paid $18 million in federal and state income taxes over nine months, net of refunds, including $8.1 million federal.

Ascend reported $231.4 million in unrecognised tax benefits, against $203.9 million at the end of 2025, plus $53.6 million in interest and penalties. It released $14.8 million from its reserve after settlements. Vireo reported $215.8 million, up from $120 million.

Open questions for the sector

The release date of the IRS guidance is unknown. It is also unclear how it will treat positions from before 28 April 2026. Outcomes of the Curaleaf review and of Trulieve’s challenge to the penalties remain uncertain.

Verano says it is still assessing how earlier uncertain positions will be resolved. Ascend says it has not adjusted prior positions because of the limited federal implementation guidance so far.

Ce que ça change pour toi

For European readers, nothing changes directly: this concerns US tax law and US-listed operators. Rules in your own country remain those of your national authorities.

The story does show how federal rescheduling could reshape the finances of a major market. Recreational cannabis stays in Schedule I pending a separate federal process. For another US policy story, see our report on the Massachusetts Question 8 vote. You can also browse our CBD flower collection.