New Lawyers
The CLA New Lawyers Section Amicus Newsletter – March 2026
Chair’s Note
Chair’s Note
Finding Our Why As New Lawyers
As we head into March, it’s the perfect time to think about how you’re shaping your legal career. This month, we’ll be exploring our “why”: the purpose, cause, or belief that drives us and the impact we want to make.
On March 17, Jessi Fierro, Chair of CLA, will lead a discussion about Simon Sinek’s framework for finding and starting with why. Guiding people to through why is part of Jessi’s why, and is foundational to her leadership within CLA. We’d love to have you join the discussion!
On March 25, we will welcome Ruthe Ashley, a pioneer and leader in the California and national legal community. Ruthe served on the Board of Governors for the State Bar of California and the American Bar Association as an early champion of diversity, equity, and inclusion. She also helped start the California Lawyers Foundation, California Legal Pathways Collaborative, and California LAW Pathways. She is a living reminder of what our why can look like, and we are excited to welcome her to our monthly “What’s New” webinar.
For me, part of my “why” is answered through the real connections I’ve made through CLA. Whether you’re just finding your footing or already building momentum, these communities offer something you can’t get from casebooks or CLEs alone: real connection. It’s not just about “networking,” but rather about discovering mentors, exploring practice areas you didn’t know you might love, and meeting colleagues who remind you why we chose this profession in the first place.
If you’re looking for a place to start, we’re always excited to welcome new voices, new ideas, and new energy. Getting involved doesn’t require a big time commitment, just a willingness to show up. And trust me, it’s worth it. Visit the NLS page and join us today!
Daniel Cheung
Chair, New Lawyers Section
California Lawyers Association
ExCom Spotlight
Anthony Lai
Current Legal (or other) Practice: Divorce and Family Law Attorney at FMBK
Current Location & Hometown: Currently in South Pasadena, CA; hometown is Stevenson Ranch, CA
Favorite Local Hangout: Canoe House
Role(s) with NLS and CLA: NLS Section Representative to the BOR. Formerly Section Chair of NLS and CLA BOR Secretary.
Other CLA Section(s) and Committees: Family Law, CLA Governance Committee
Favorite Thing About NLS: My favorite thing about NLS is getting to connect and serve with lawyers from different walks of life and parts of the state, develop camaraderie and expand my professional network.
Fun Fact About Me: I’m involved in local government as Chair of South Pasadena’s Community Services Commission. It keeps me grounded, because you end up caring a lot about surprisingly fun things like playgrounds, community events, and the little decisions that shape how people spend their weekends.
You can connect with Anthony on LinkedIn.
Legal Tidbits
Tax Impacts on Cannabis Businesses
The ever evolving cannabis industry evolved ever more in December 2025 with the collision of the past and what appears to be the future. The past, as it may be deemed in the future, is section 280E of the Internal Revenue Code. For those in the legal cannabis industry (like here in California) section 280E is a very important and infamous tax statute. Section 280E prohibits tax deductions and credits for those trades and businesses engaging in “trafficking” of “controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.”
Put simply, “drug traffickers” are prohibited from utilizing tax deductions and credits to determine their income tax resulting in a much larger income tax liability. For example, “drug traffickers” are not entitled to deductions for wages, supplies, rent, etc. Many courts have held that section 280E applies to the legal cannabis industry—the only claimable expense was cost of goods sold for reasons which are not discussed here. This is because while cannabis was legal in the states in which these taxpayers were operating, cannabis was illegal under federal law and was (is) specifically a Schedule I narcotic. This meant that legal cannabis businesses (under state law, like in California) could not claim tax deductions and credits like other businesses drastically increasing their federal income tax liability. This also resulted in various creative arguments for why certain expenses were not subject to section 280E.
Many legal cannabis businesses accrued substantial amounts of unpaid federal income tax liabilities due in part to section 280E. One of those taxpayers sought to compromise its federal income tax liabilities using the IRS Offer in Compromise procedures wherein the IRS agrees to accept less than what the taxpayer owes as a compromise. Whether and to what extent the IRS accepts an offer is based on the taxpayer’s financial circumstances and collection potential—the IRS has wide discretion when it comes to offers. For reasons not discussed here, this taxpayer’s case was heard by the U.S. Tax Court. The issue was whether the IRS abused its discretion in not allowing various business expenses when determining the taxpayer’s reasonable collection potential (the ability of the taxpayer to pay over a period of time based on its net income, revenue after necessary expenses). When reviewing an offer, the IRS had (has) a policy of not allowing business expenses which would be prohibited as a deduction under section 280E. The IRS determined that the taxpayer, a California legal cannabis business, could afford to pay much more than it was offering because most of its operating expenses were not considered in determining its net operating revenue.
In a reviewed opinion, the Tax Court held that the IRS policy was not an abuse of discretion. The Tax Court thus held that the IRS was within its discretion to not allow business expenses which would be prohibited as deductions under section 280E when reviewing an offer. See Mission Organic Center, Inc. v. Commissioner, 165 T.C. No. 13 (Dec. 16, 2025). This was not a unanimous decision, there were multiple dissents. Coincidentally, on December 18, 2025, President Trump issued an Executive Order directing the regulatory rescheduling of cannabis from Schedule I to Schedule III. Such a rescheduling does not legalize cannabis but does remove cannabis from section 280E which only prohibits deductions and credits for Schedule I and Schedule II narcotics. While the Executive Order provides for expediency, those who practice in administrative law know that the regulatory process is slow moving. It is uncertain when the regulatory rescheduling will be complete.
In the meantime, this raises a series of questions. Will the rescheduling moot all prior court holdings that legal cannabis businesses are subject to the limitations of section 280E? Will the rescheduling apply retroactively to allow taxpayers previously limited by section 280E to claim tax refunds? How quickly will the IRS voluntarily change its internal policy following rescheduling, if at all? Does rescheduling open the legal cannabis industry to additional capital investment, for better or worse?
Daniel W. Soto, Senior Associate Attorney
Taylor Nelson Amitrano LLP, A Tax Controversy Firm
Email | Phone: 714-546-0445
Bio: https://www.taylorlaw.com/attorneys/daniel-w-soto
Los Angeles Incubator Consortium: Supporting New and Solo Lawyers
NLS is partnering with the Solo Small Firm section to highlight issues facing new lawyers in their monthly newsletter, The Advisor.
Read the latest article by NLS Vice Chair Tammie Ton titled “Los Angeles Incubator Consortium: Supporting New and Solo Lawyers” here!
Upcoming Opportunities/Events
March 17: Free Webinar: Grow Your Leadership: Start with Why and Find Your Why
Join the New Lawyers Section and CLA Chair Jessi Fierro as we talk about drafting and refining our “why statement,” which prompts in the book were most helpful or challenging, where we need why (work? Volunteer efforts? Other areas?), and more. Join us for discussion even if you don’t finish the book!
March 25: Free Webinar: What’s New? Monthly NLS Chair’s Webinar with Ruthe Ashley, California Lawyers Foundation
This month we are honored to welcome Ruthe Catolico Ashley, a legal trailblazer and – among her many accomplishments – founder and immediate past chair of the California Legal Pathways Collaborative (CLPC), which focuses on expanding resources for the high school law academies project started by Ashley in 2010 . Ruthe has spent decades working to ensure that California’s legal profession reflects the rich diversity of the state’s population and provides equal access to justice.
Free Webinars in March
- March 5: Response to ICE Actions
- March 5: Mental Wellness in Early Legal Practice
- March 10: Tips and Tricks to Turning Environmental Concepts into Law
- March 13: Legal Writing Summit by State Bar of Georgia YLD
- March 17: Grow Your Leadership: Start with Why and Find Your Why
- March 25: What’s New? Monthly NLS Chair’s Webinar with Ruthe Ashley, California Lawyers Foundation
March 5, 5-8:30 PM, 9th Annual Celebrating Women in Competition Law in California (In-Person in SF)
Join the Antitrust and Consumer Protection Section and NLS Advisor Jill Manning in celebrating women in competition law in California.
March 9-12, 5th Annual California International Arbitration Week (In-Person in SF)
Save the date for the 5th Annual California International Arbitration Week! Join us for a week of insightful discussions, expert panels, and networking opportunities focused on the latest trends and best practices in international arbitration. Discounted rates are available for NLS members.
March 12-13, Estate and Gift Tax Conference (In-Person in SF)
We are excited to bring to you the two-day 2026 Estate and Gift Tax Conference at UC Law San Francisco, March 12-13, 2026. Featured are fantastic sessions with expert panelists that will cover an array of topics centered on your practice, everything from planning for high-net-worth clients to international tax updates. Meet other attorneys, enjoy the city, and take advantage of this unique conference designed for you!
March 19-21, Annual Public Law Conference (In-Person in SD)
NLS will be co-sponsoring a mixer for new lawyers, and be sure to stop by and meet our Public Law Liaison, Kathryn Romo, who will be moderating a panel at the conference!
March 20-21, 49th Annual IP Institute (In-Person in SF)
The Intellectual Property (“IP”) Law Section of the California Lawyers Association will host its 49th Annual IP Institute March 20-21, 2026, in person at the Clift Royal Sonesta in San Francisco, California. Our event is one of the nation’s premier IP conferences, offering access to top industry leaders and sessions. It will cover a wide range of cutting-edge and compelling topics of intellectual property law and feature our popular IP Vanguard Awards event. Significantly discounted rates are available for NLS members and government lawyers.
March 26, SSF Night of Networking (In-Person in LA, Sac, SD, and SJ)
Join the Solo and Small Firm and Law Practice Management and Technology Sections of CLA for a “Night of Networking,” an evening mixer celebrating the legal community across California. Light appetizers and beverages will be available. If you are interested in attending, a limited number of discounted registrations are available for NLS members. Please contact newlawyers@calawyers.org for more information.
April 8, CLA Legislative Day (In-Person in Sac)
Join CLA and representatives from the New Lawyers Section for a unique opportunity to explore pressing issues facing the legal profession, proposed changes on the horizon, and how CLA members can make a difference. Interact directly with key decision makers from all three branches of government, influence change, forge partnerships, and connect with other leaders. A limited number of discounted registrations are available for NLS members. Please contact newlawyers@calawyers.org for more information.
May 1, CLA Law Day (In-Person Statewide)
Join the California Lawyers Association, California Lawyers Foundation, the CLA Civic Engagement and Outreach Committee, and the New Lawyers Section as we recognize Law Day, a national day set aside to celebrate the rule of law. Law Day provides an opportunity to understand how law and the legal process protect our liberty, strive to achieve justice, and contribute to the freedoms that all Americans share. We are encouraging attorneys throughout the state to reach out to their local high school to present from When You Turn 18 – information about the law that high school students need to know as they reach adulthood. Attorney presenters will also share about their path to the legal profession. CLA is partnering specifically with the California Legal Pathways Collaborative to make presentation at select schools in Fresno, Pasadena, Sacramento, and San Diego. We hope you’ll join us!
Past Events
- February 5-6, L&E Employment Law New Practitioners Conference
- February 19-20, Privacy Law Summit (In-Person in LA)