Cannabis Company’s $8 Million Refund Must Be Returned, Says US

The federal government is entitled to an $8.4 million reimbursement after it erroneously granted a tax refund in the same amount to a cannabis company, the Department of Justice told the US District Court for the District of New Jersey.

TerrAscend USA Inc. must repay the check it was issued for its 2020 tax year, plus accrued interest, because the refund should have been prevented in the first place under IRC Section 280E, the government said. The statute bars deductions for businesses seen as trafficking in controlled substances—or those listed as schedule I and ...