MGO CPA

Goal: Reduce Tax Exposure

Tax Credits and Incentives

Turn tax expenses into positive cash flow

A key to your growth can be maximizing federal, state, and local government tax programs designed to stimulate growth, incentivize businesses to join or stay in a community, and spur innovation. When you leverage these opportunities you can significantly reduce your tax burden and funnel capital back into your organization, even for past tax years through amended returns.

Ethics at the heart of tax credits and incentives

The world of tax credits and incentives is, unfortunately, rife with big promises and dangerous repercussions. At MGO, we always put your interests first. In all of our engagements we offer fixed fee rates that are not contingent on what we save you. This helps avoid IRS red flags and delivers you peace-of-mind.

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R&D Costs Now Require Amortization Under Section 174

As of 2022, businesses are no longer allowed to deduct research and experimental (R&E) costs under Section 174. Instead, these expenses must now be amortized over five years (15 years for foreign-based research). 

This change doesn’t just affect startups or high-tech firms — it applies to any business using R&D tax credits or engaging in product, process, or software innovation. 

At MGO, we help clients assess how Section 174 interacts with their tax credit strategy — helping you align compliance with your cash flow goals. Our planning incorporates both the benefits of credits and the obligations of cost treatment, so you’re not caught off guard. 

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Tax Credit and Incentives Solutions

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R&D Tax Credits

Power innovation by reducing tax liability through state and federal R&D credits.

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Work Opportunity Tax Credit

Enhance your tax strategy with our Work Opportunity Tax Credit (WOTC) services. Benefit from potential credits for hiring qualified employees and support diversity.

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Renewable Energy Investments and Credits

For governments, businesses, or nonprofits seeking financial incentives for renewable energy investments, understanding and utilizing available tax credits and funding mechanisms is essential.

Tax Leaders Ready To Serve You

As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.

Tax Advocacy and Resolution

Enjoy the security of conflict resolution support

Pre-Audit Readiness

Identify potential tax risk areas, prepare for tax agency information requests, and work to resolve issues prior to a tax agency examination.

Audit Representation

We’ll be your guide at meetings with tax agencies, provide consultation on a regular basis, and deliver guidance on a resolution approach throughout the audit process.

Appeals and Offer-in-Compromise

We’ll support the preparation and filing of appeals and offer-in-compromise, and provide related guidance and consultation.

Penalty Abatement and Installment Agreements

Benefit from strategies for obtaining penalty abatements, negotiating installment agreements, and assisting with lessening the tax burden.

Post-Resolution Services

We will provide assistance with staying current on payments and agreements, and providing strategies to avoid repeat issues.

Our promise to you

Preparation is the key

Stay off the radar of tax authorities with our guidance on compliance and documentation best practices.

Peace-of-mind and cooperation

In the event of an audit, our tax professionals know exactly how to deliver what the IRS needs … without increasing your exposure. Let us manage the process so you avoid additional risk.

Optimal outcomes

Our deep experience with the IRS and other tax authorities helps us determine strategies that deliver results that protect the most important asset: your financial future.

Tax Leaders Ready To Serve You

As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.

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Enterprise Business Tax

Your goal is to drive growth on a large scale. Our goal is to identify strategic opportunities, streamline complexities, and deliver tax solutions that align with your enterprise’s needs.

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State and Local Tax

With varying regulations in every market, reduce exposure and maximize your opportunities to save.

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Tax Credits and Incentives

Put your profits back where they belong: driving expansion and innovation for your organization. With experienced guidance credits and incentives can be a powerful tool for fueling your growth.

State and Local Tax

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Fuel the future of your business

GROW ACROSS STATE LINES

Complying with multi-state tax regulatory and reporting requirements may feel like a time-consuming hassle, but with our guidance, you can reduce your tax burden and deduct major expenses.

Services we offer include:

  • State and local tax compliance
  • Property, sales, and use tax
  • Tax credit consulting, including R&D
  • Credits and incentives
  • Controversy support
  • Excise tax analysis
  • Cultivation tax compliance

Our promise to you

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Guidance where you need us

No matter where you’re doing business in the U.S., our dedicated State and Local Tax team has offices from coast-to-coast and can provide seasoned experience for every major market.

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Stay updated on the latest

As tax codes shift with every election cycle, you need to stay agile and prepared. We’ll do the hard work of monitoring new developments to manage your exposure.

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Capitalize on deduction opportunities

Each tax jurisdiction has unique credits and incentives program. We’ll dig deep on your operation, and the credits you qualify for, to deliver the best value for your business.

Tax Leaders Ready To Serve You

As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.

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Enterprise Business Tax

Your goal is to drive growth on a large scale. Our goal is to identify strategic opportunities, streamline complexities, and deliver tax solutions that align with your enterprise’s needs.

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R&D Tax Credits

Power innovation by reducing tax liability through state and federal R&D credits.

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Tax Credits and Incentives

Put your profits back where they belong: driving expansion and innovation for your organization. With experienced guidance credits and incentives can be a powerful tool for fueling your growth.

R&D Tax Credits

Do you qualify?

FOUR-PART R&D TAX CREDIT CRITERIA


Regardless of industry, companies are potentially eligible to save up to 15% of qualified research expenses if their activities meet the following requirements, known as the four-part test.

1. Qualified Purpose

Activity must relate to a new or improved product or process, formulation, invention, software, or technique that results in increased performance, function, reliability, or quality.

2. Technological in Nature

The activity fundamentally relies on a hard sciences, such as engineering, physics, chemistry, biology, or computer science.

3. Technical Uncertainty

There must be uncertainty concerning the capability to develop, method of developing, or appropriate design of a new or improved product or process at the outset of the project.

4. Process of Experimentation

Substantially all of the activities are undertaken to eliminate or resolve technical uncertainty. This process involves an evaluation of one or more alternatives and is performed through modeling, simulation, systematic trial and error, or other methods.

Qualifying R&D expenses


Costs related to R&D activities may be eligible to be expensed immediately to reduce overall tax liability. Qualified R&D costs can potentially include these four categories.

1. Wages

For employee wages to qualify, they must perform research activities, like the following:

  • Conducting or executing the qualified research
  • Supervising the qualified research
  • Supporting qualified research
2. Supplies

Supplies used to conduct research may qualify if they are tangible properties directly used in research activities that were not capitalized or depreciated. A common example is raw materials used to fabricate and test prototypes.

3. Contract Research

Valid contract research expenses must include time spent conducting or executing qualified research performed by a contracted third party and not the business entity itself.

To qualify contract research, a business must:

  • Maintain substantial rights to the research performed; and
  • Bear the economic risk of the contractor’s development.
4. Computer Rental/Lease Costs

This can include the purchases and maintenance of technology used in pursuit of research. Payments made to cloud service providers may also qualify if those payments are related to hosting new or improved software.

Our promise to you

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Cost-free assessments

Your day-to-day tasks may qualify for significant R&D tax credits. Our team is happy to review your organization to assess eligibility.

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Access what you deserve

If you haven’t been taking R&D tax credits, it’s not too late. We’ll review past returns and identify any missed opportunities.

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Your benefit is our only goal

Our flat-fee, no contingency approach is focused on getting you defensible credits with limited risk.

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Section 174: The Hidden Factor in R&D Tax Planning

Starting in 2022, companies are no longer allowed to fully deduct research and development (R&D) expenses in the year they’re incurred. Under Section 174 of the tax code, these costs must now be amortized over five years for U.S.-based R&D or 15 years for foreign R&D expenses. 

Even if you’re claiming the R&D tax credit under Section 41, you must still amortize qualified research expenses on your tax return. 

This shift has two major implications: 

  • Increased taxable income in the near term due to delayed deductions 
  • Heightened IRS scrutiny if R&D credit claims and Section 174 cost treatments aren’t aligned 
Learn More

Tax Leaders Ready To Serve You

As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.

Related Solutions

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Tax Credits and Incentives

Put your profits back where they belong: driving expansion and innovation for your organization. With experienced guidance credits and incentives can be a powerful tool for fueling your growth.

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Enterprise Business Tax

Your goal is to drive growth on a large scale. Our goal is to identify strategic opportunities, streamline complexities, and deliver tax solutions that align with your enterprise’s needs.

Employee Retention Credit

Accelerate your recovery

Created as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), additional legislation has extended and expanded the Employee Retention Tax Credit (ERTC). Eligibility, amount, and availability of the credit depends on many factors, and there is significant confusion in the marketplace about who qualifies.

We are here to look at your finances holistically to determine eligibility, claim credits (proactively or retroactively), and assist with regulatory compliance related to the combination of all aid programs.

Our ERTC services include:

  • Assessment
  • Filing support
  • Compliance support
  • Assess and review for potential issues
  • Guidance for audits due to improper filing
    • Assess if existing claims have been properly submitted
    • Review for any potential tax controversy issues
    • Manage audits and other issues

Frequently asked questions

Do you qualify for the ERTC?

It’s not too late.

Recent legislative updates have extended eligibility deadlines. We’ll put you on the fast-track to benefit from ERTCs before time expires.

Can you claim the ERTC if you’ve received Paycheck Protection Program (PPP) loans?

Yes, but only under certain conditions. With our experienced guidance we can ensure your PPP loan forgiveness does not contradict your ERTC claims.

Will the IRS be examining ERTC claims?

The IRS has extended the statute of limitations on assessing credit claims to five years. That suggests auditors will be taking a close look at companies claiming the credit.

Our promise to you

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Sound accessments

As deadlines and eligibility requirements shift, it is essential that your ERTC claims are well-founded. We’ll do the hard work to document and defending your legitimate claims.

It’s not too late

Recent legislative updates have extended eligibility deadlines. We’ll put you on the fast-track to benefit from ERTCs before time expires.

No games, only results

The IRS has made it clear they’ll be reviewing ERTC claims closely. That’s why our approach leaves no room for error to limit your risk.

Tax leaders ready to serve you

As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.

Related Solutions

See all solutions
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Tax Credits and Incentives

Put your profits back where they belong: driving expansion and innovation for your organization. With experienced guidance credits and incentives can be a powerful tool for fueling your growth.

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R&D Tax Credits

Power innovation by reducing tax liability through state and federal R&D credits.

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Enterprise Business Tax

Your goal is to drive growth on a large scale. Our goal is to identify strategic opportunities, streamline complexities, and deliver tax solutions that align with your enterprise’s needs.

Client Accounting Solutions

Lower costs and boost performance

Outsourced Accounting Support

Whether you want to augment your team or transform the accounting function, the benefits of outsourcing include:

  • Accounts payable and receivable
  • Journal entry and ledger maintenance
  • Financial statement preparation
  • Tax planning and consultation
  • Classification, entry, and verification of transactions
  • Sales tax processing
  • Fixed asset and depreciation tracking
  • Cash balance tracking
  • Monthly reconciliation
Virtual CFO

Whether you lead and early-stage business or a mature organization in transition, our virtual/interim CFO solutions provide financial leadership at times when you need it most. The roles we help fill include:

  • Chief financial officer
  • Controller
  • Director of finance
  • Vice president of finance
IPO and Event Readiness

Seize opportunity with our highly-scalable finance and accounting solutions backed by a deep understanding of accounting standards. Specific areas where we can provide support include:

  • Preparation of filing documents, such as Form S-1
  • Implementation of new or modified accounting standards
  • Preparation of annual, interim, and pro forma financial statements
  • Income tax provision and preparation note disclosures
  • Preparation of transaction and audit analyses and support
  • Valuation services, including allocation of purchase price
  • Conversion from GAAP or IFRS
  • Transaction or audit readiness and audit liaison support

Our promise to you

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Here for you

Never miss an opportunity to grow. Our tactical approach puts support on-hand in the times and places you need it the most.

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Be resource savvy

Maintaining a robust accounting function can be expensive. Outsourcing to qualified professionals can ease stress and deliver peace-of-mind.

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Technical guidance on tap

With big transactions or deadlines in your future gaining access to technical resources can safeguard value and set you up for success.

Consulting leaders ready to serve you

As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.

We were quite happy with Angel's leadership.  This was an extremely complex project, and at all points of the engagement we felt that we were important to MGO and the team.  It was a Herculean effort by the MGO team.

CEO National Nonprofit based in Los Angeles

While under an extremely tight deadline with intense time pressure, MGO’s recent audit of Amyris’ financial statements was thorough, focused, and insightful. MGO clearly has the technical expertise and resources to respond to a firm as large and complex as Amyris, Inc., and provides the personal touch and attention that is unusual.

Jonathon Wolter Interim CFO, Amyris Inc.

We can’t believe the difference in (the MGO) team’s professionalism and engagement.

Charlie Bowman CEO and President, HEXO Corp.

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Transaction Advisory

Whether you’re buying or selling, you need to capitalize on every opportunity to maximize your return. With our support you can manage risk and uncover opportunities through every stage of the deal.

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Technical Accounting

Leverage MGO’s Technical Accounting for state controllers reports, technical R&D, and more. Enhance your financial operations now.

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Management Consulting

To elevate your organization into a market leader, you need to actively seek value and optimize performance everywhere there is opportunity. Excellence throughout core business functions is what will separate you from the rest of the pack.

Enterprise Business Tax

Optimize Your Enterprise Tax Strategy

In today’s evolving global marketplace, international enterprises face a complex and ever-changing tax landscape. At MGO, we understand the challenges your organization faces — from navigating shifting tax regulations to managing multistate compliance, corporate structuring, and large-scale transactions.

Our comprehensive suite of enterprise tax services is designed to help you optimize your tax position, manage risks, and streamline operations. Whether you are expanding into new markets, restructuring your organization or looking to maximize tax efficiencies, we provide the strategic guidance you need to achieve your business goals and maintain a competitive edge.

  • Corporate Tax Compliance and Planning: Stay ahead of evolving corporate tax regulations with forward-thinking strategies that maximize efficiency and keep you compliant across global jurisdictions. 
  • International Tax Services: Navigate the complexities of international tax laws with strategies that address cross-border transactions, global operations, and multi-jurisdictional compliance. 
  • Transfer Pricing: Manage intercompany pricing arrangements to align with global standards, reducing the risk of penalties and increasing tax efficiency across your global supply chain. 
  • Tax Provision (ASC 740): Keep your financial statements accurate and reliable with precise management of income tax reporting. 
  • IPO Structuring and Inversion Analysis: Minimize tax liabilities and maximize shareholder value with strategic advice on initial public offerings (IPOs) and inversions. 
  • Credits and Incentives: Identify and leverage tax credits and incentives globally to reduce your overall tax burden and enhance cash flow. 
  • Inbound Tax Needs: Address the unique tax challenges faced by foreign companies operating in the U.S. — from entity structuring to compliance with federal and state regulations. 
  • 280E Analysis and Optimization: Navigate Section 280E while improving your tax position with tailored strategies for industries like cannabis. 
  • Entity Choice and Structuring: Optimize your global operations with the right entity structure, aligned with your long-term business goals. 
  • Operating Agreement Review: Review your operating agreements to confirm they are tax-efficient and compliant with international laws. 
  • Debt/Equity Analysis: Optimize your financing structure with detailed analysis to maximize tax efficiency and maintain compliance. 

Tax leaders ready to serve you

As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.

Solutions Built for You

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International Tax

Conduct business across borders with confidence you’re limiting risk and maximizing returns.

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Tax Credits and Incentives

Put your profits back where they belong: driving expansion and innovation for your organization. With experienced guidance credits and incentives can be a powerful tool for fueling your growth.

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M&A Sell-Side Advisory

Selling a business takes time and preparation. MGO works with business owners to plan ahead — aligning operations, financials, and tax strategy — so you’re ready when the right opportunity comes along.