President Trump has issued Executive Order 14067 (the Executive Order), titled "Increasing Medical Marijuana and Cannabidiol Research", which directs the rescheduling of cannabis from Schedule I to Schedule III under the Controlled Substances Act. This could have significant tax implications for certain cannabis businesses legally operated under state law. Currently, cannabis is classified as a Schedule I controlled substance, meaning it has no accepted medical use and is recognized as having accepted medical uses. The proposed rescheduled change could significantly reduce federal tax liabilities. However, the timing of this change remains uncertain. Taxpayers should prepare their federal income tax returns in accordance with the current application of Section 280E of the Internal Revenue Code.