DEA Reconsiders Marijuana Restrictions Following Release of Scientific Review

AAFCPAs would like to make cannabis clients aware of a 250-page scientific review published online recently by Matthew Zorn, an attorney in Texas, after he sued Health and Human Services officials for its release. In this document, federal scientists conclude that marijuana should not be classified as a Schedule I drug. Researchers conclude that marijuana is not as risky nor as prone to abuse as other Schedule I substances and that it offers potential medical benefits. This could have a significant impact on cannabis clients, as this news could be pointing toward de-scheduling.

Marijuana has been listed as a Schedule I drug since 1970, a classification that covers any substance, chemical, or drug that has no accepted medical use and a high potential for abuse, such as heroin, ecstasy, and LSD. Scientists at the Food and Drug Administration and those at the National Institute of Drug Abuse have recommended that marijuana be reclassified instead as a Schedule III drug, which includes those with a moderate to low potential for physical and psychological dependence. Examples of Schedule III drugs include Tylenol with codeine, ketamine, and testosterone.

Federal officials cautioned the general public that this analysis supports some medical use but does not establish the effectiveness or safety of marijuana as required for FDA approval. But last August, the FDA advised the Drug Enforcement Administration to recategorize marijuana. An announcement is expected from the DEA within months, which would then be subject to public comment and debate. Industry experts consider this a significant win. AAFCPAs will continue to monitor this case along with future related rulings, tax ramifications, and legislation.

If you have questions, please contact Tomás A. Pueyo, Jr., CPA, MSA, Tax Manager at 774.512.9081 or tpueyo@nullaafcpa.com, Joshua England, LLM, Esq., Partner & Tax Attorney at 774.512.4109 or jengland@nullaafcpa.com—or your AAFCPAs Partner.