26 U.S.C. § 280E — Expenditures in connection with the illegal sale of drugs

submitted 44 years ago by Pub. L. 97-248 to r/title-26-INTERNAL-REVENUE-CODE · 77 words · no verdicts yet

in plain englishAI-generated · not legal advice

This tax law blocks deductions and credits for illegal drug trafficking businesses. It applies when the business involves trafficking in controlled substances banned under federal or state law. The ban covers Schedule I and II substances under the Controlled Substances Act.

No business can deduct or claim a tax credit for any amount it pays or incurs during the year while running a trade or business. This applies only if that trade or business — or the activities that make it up — consists of trafficking in controlled substances. "Controlled substances" here means those listed in Schedule I or Schedule II of the Controlled Substances Act. This rule applies whether the trafficking is illegal under federal law or under the law of any state where the business operates.

the actual law source: uscode.house.gov ↗public domain

No deduction or credit shall be allowed for any amount paid or incurred during the taxable 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.

Source credit: (Added Pub. L. 97–248, title III, § 351(a), Sept. 3, 1982, 96 Stat. 640.)

history & why it existsrecord from the source credit

1982Enacted · Pub. L. 97-248 · 96 Stat. 640

A history note hasn’t been published yet. The record shows enactment by Pub. L. 97-248 on 1982-09-03.

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