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Phillips Murrah law firm names three new Directors

OKLAHOMA CITY (January 3, 2022) – The law firm of Phillips Murrah proudly announces the promotion of Robert K. Campbell, Jessica N. Cory, and C. Eric Davis to Directors for the Firm. These additions bring the Firm’s total number of Directors to 38.

Robert Campbell, Jessica Cory, and Eric Davis

“These skilled attorneys serve and excel in different areas of law, and the Firm couldn’t be prouder to have them join our leadership and help shape Phillips Murrah’s future,” said Thomas G. Wolfe, President and Managing Partner.

Robert’s legal practice is focused in the area of family law, specifically concentrated in matters of divorce, legal separation, and custody issues. He represents clients by providing steady, thoughtful, and resourceful counsel to advise them through significant family and life transitions.

Robert graduated cum laude from the Oklahoma City University School of Law in May 2007. Prior to law school, he received his BBA in Business Marketing from the University of Oklahoma, Michael F. Price College of Business, graduating with distinction.

While in law school, Robert received several awards including being on the Dean’s Honor Roll and Faculty Honor Roll. Additionally, he was the recipient of the CALI Award of Excellence, which is awarded to the student with the highest grade in the courses as determined by the professor for two of his courses (Legal Analysis and Corporations). He was involved in several student organizations in law school including Merit Scholars, Phi Delta Phi, Phi Kappa Phi, The Association of Trial Lawyers of America (ATLA) and the Student Bar Association.

Robert was born in Texas where he resided before moving to Oklahoma in 1997. In his free time, he enjoys spending time with his wife, Emily, who is also a practicing attorney in Oklahoma City. He enjoys golfing and most outdoor activities.

Jessica’s practice focuses on tax law, and she represents businesses and individuals in a wide range of matters, including general tax planning, business succession planning, and the structuring of complex transactions.

Jessica has advised clients regarding corporate and general business matters, including choice of entity, formation, tax-free reorganizations, acquisitions and dispositions, and tax planning. She has particular experience working with flow-through entities, including disregarded entities, limited liability companies, partnerships, and S corporations. Jessica has also successfully represented clients in disputes with the Internal Revenue Service.

Prior to entering private practice, Jessica gained valuable experience service as a judicial clerk for United States District Court Judge Robin Cauthron in the Western District of Oklahoma. She then received her Masters of Law in Taxation at New York University School of Law and worked for a law firm in Houston, Texas before joining Phillips Murrah. Jessica is licensed in both Oklahoma and Texas.

Jessica has written and presented on a variety of tax topics, including choice-of-entity in light of the 2017 tax reform, the tax implications of foreign ownership of real property, changes to the partnership audit procedures enacted in 2015, and defending against the trust fund recovery penalty.

Jessica grew up in Killeen, Texas but now lives in Oklahoma City, Oklahoma. In her free time, she enjoys spending time with friends and family, traveling, and training for her next race.

Eric is a member of the Firm’s Government Relations and Compliance Practice Group, Clean Energy Practice Group, and Healthcare Practice Group. He represents clients in proceedings before a range of governmental agencies. He serves as prosecutor for the Oklahoma Construction Industries Board, and also frequently practices before the Oklahoma Corporation Commission. Eric’s utility regulation experience includes representing public utilities and other stakeholders in rate cases, merger/acquisition applications, applications for certificates of authority, and rulemakings.

Prior to joining Phillips Murrah, Eric served as an Assistant Attorney General in the Office of the Oklahoma Attorney General, and as legal counsel at both the Corporation Commission and the Tax Commission. Eric also served low-income Oklahomans at Legal Aid in Lawton, Oklahoma, and spent two years clerking for the state trial courts of Vermont.

Eric received his J.D. from the University of Michigan Law School where he was managing editor of the Michigan Journal of Race & Law. He received his undergraduate degree from Oklahoma State University where he was named the Political Science Department’s “Outstanding Senior.” Recognized by his peers as a “Best Lawyer in America” for 2021, Eric is an alum of Leadership Oklahoma City and the Oklahoma Bar Association’s Leadership Academy. He is also a past board member of the Oklahoma Bar Association’s Young Lawyers Division.

Born and raised in Stillwater, Oklahoma, Eric now lives in Oklahoma City with his wife, Nadine, and their sons, Nathan and Zac. He enjoys music, hiking, PBS NewsHour, and OSU football.

Income tax challenges for medical marijuana businesses in Oklahoma

On June 26, Oklahoma voters approved State Question 788, which legalizes the use, growth, and sale of marijuana in the state for medicinal purposes.  In addition to providing rules for individual use of medical marijuana, the approval of SQ 788 also created a number of opportunities for new related businesses, such as retailers or dispensaries, commercial growers and processors. However, although licensed medical marijuana businesses are now legal under Oklahoma state law, conflicting federal law creates a number of challenges for business owners, particularly with respect to federal income tax law.

Attorney Jessica N. Cory

Jessica N. Cory advises clients regarding corporate and general business matters, including choice of entity, formation, tax-free reorganizations, acquisitions and dispositions and tax planning.

Generally, the Internal Revenue Code allows a taxpayer to take a deduction for all “ordinary and necessary” business expenses paid or incurred during the taxable year.  Congress has created an exception to this rule in certain instances, however.  One such exception is Internal Revenue Code Section 280E, which prohibits a taxpayer engaged in the business of “trafficking in controlled substances” from taking a deduction for ordinary business expenses.  For purposes of this provision, a controlled substance is any Schedule I or Schedule II drug under the federal Controlled Substances Act, which includes marijuana.  Although taxpayers have argued that Code Section 280E should not apply to businesses operating legally under state law, courts have repeatedly rejected this argument, concluding that any business buying or selling marijuana regularly is subject to the restrictions of Code Section 280E until Congress chooses to amend the Internal Revenue Code.

Although Code Section 280E’s bar on deductions represents a significant obstacle for medical marijuana business owners, several exceptions help reduce the burden on these taxpayers.  For example, although a medical marijuana business cannot deduct expenses in the same way as other taxpayers, it is entitled to offset its gross receipts with its cost of goods sold (“COGS”), although the Internal Revenue Service has issued guidance strictly limiting what types of costs a taxpayer engaging in a marijuana business can allocate to COGS.  Caselaw supports this narrower interpretation of COGS, including prohibiting resellers of marijuana from including any indirect costs – costs other than the price paid for inventory plus any transportation or other necessary acquisition costs – in COGS.

Another important exception to Code Section 280E is the separate business rule recognized by the Tax Court in an early medical marijuana case.  Under this rule, although Section 280E may preclude a taxpayer from taking any deductions relating to its medical marijuana sales, it can still deduct its expenses for any separate, non-trafficking trade or business.  Accordingly, it is extremely important for a marijuana business to keep careful records of any other businesses it may also operate, unrelated to growing, processing, or selling marijuana.

Members of Congress have repeatedly introduced legislation to exempt marijuana businesses lawfully operating under state law from the parameters of Section 280E.  Until this type of legislation is enacted, however, federal tax law will remain a potential minefield for any unwary medical marijuana businesses.  It is therefore important for businesses opening under SQ 788 to seek out an experienced accountant or tax lawyer to discuss the best way to structure their business to comply with federal tax law while minimizing their tax burden.


If you would like to know more about how this affects your business, contact Jessica N. Cory at 405.552.2472 or jncory@phillipsmurrah.com.

Phillips Murrah’s legal team welcomes tax attorney

Jessica Cory

Jessica N. Cory

Phillips Murrah law firm is proud to welcome Jessica N. Cory to our downtown Oklahoma City office.

Phillips Murrah welcomed Jessica to the Firm’s Tax Law Practice Group as an associate attorney.

In her practice, Jessica represents businesses and individuals in a wide range of matters, including general tax planning, business succession planning, and the structuring of complex transactions.

Jessica has advised clients regarding corporate and general business matters, including choice of entity, formation, tax-free reorganizations, acquisitions and dispositions, and tax planning.  She has particular experience working with flow-through entities, including disregarded entities, limited liability companies, partnerships, and S corporations.  Jessica has also successfully represented clients in disputes with the Internal Revenue Service.

Prior to entering private practice, Jessica gained valuable experience service as a judicial clerk for United States District Court Judge Robin Cauthron in the Western District of Oklahoma.  She then received her Masters of Law in Taxation at New York University School of Law and worked for a law firm in Houston, Texas before joining Phillips Murrah.  Jessica is licensed in both Oklahoma and Texas.

Jessica has written and presented on a variety of tax topics, including choice-of-entity in light of the 2017 tax reform, the tax implications of foreign ownership of real property, changes to the partnership audit procedures enacted in 2015, and defending against the trust fund recovery penalty.

Jessica grew up in Killeen, Texas but now lives in Oklahoma City, Oklahoma.  In her free time, she enjoys spending time with friends and family, traveling, and training for her next race.