Incriminating Expenses: Cannabis Legalization and the Fifth Amendment

July 18, 2019  |  New York Law Journal

More than half of the states and the District of Columbia have adopted legislation to either decriminalize or legalize cannabis, giving rise to numerous for-profit businesses. However, while growing and distributing cannabis is lawful in certain states, the Internal Revenue Code precludes individuals engaged in such conduct from deducting expenses associated with their operations. In this article, I discuss a series of cases exploring the Fifth Amendment implications of disallowing business deductions for state-sanctioned businesses, and address the limitations of the Fifth Amendment privilege against self-incrimination in litigation over disputed deductions.  

Incriminating Expenses: Cannabis Legalization and the Fifth Amendment (pdf | 281.41 KB)