The Internal Revenue Service (IRS) says that while marijuana industry workers are not currently eligible under the “No Tax on Tips” law signed by President Donald Trump last year to write off any gratuities they receive, that could change in the event of federal legalization.
The agency discussed the issue in a final rule for implementing the policy that was published in the Federal Register on Monday.
One person who submitted a public comment in response to an earlier draft rule that was circulated in September “noted that State-legal cannabis industry workers operate in regulated, State-compliant industries and should not be excluded merely because their employers engage in commerce that involves a federally classified controlled substance,” IRS said in the new filing.
It is not uncommon for so-called budtenders to receive tips from customers at the point of purchase in marijuana dispensaries, similar to bartenders who serve alcohol or baristas who pour coffee.
However, the new IRS rule says that “qualified tips” do not include those “received while performing services that are misdemeanors or felonies under applicable law”—and cannabis remains federally illegal.
“Workers in the cannabis industry must meet statutory and regulatory requirements like any other employee to be eligible
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