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 your tax liability with federal and state R&D tax credits. MGO helps you determine whether you qualify, document your qualifying activities, and claim the credit with confidence.

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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.

Related Solutions

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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 your tax liability with federal and state R&D tax credits. MGO helps you determine whether you qualify, document your qualifying activities, and claim the credit with confidence.

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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 for the R&D Tax Credit?

FOUR-PART R&D TAX CREDIT CRITERIA


The R&D tax credit isn’t limited to laboratories and tech companies. Businesses in many industries may be eligible if their activities meet the IRS’s four-part test. Manufacturers, software developers, apparel brands, wineries, and life sciences companies often qualify without realizing it.

1. Permitted Purpose

The activity must relate to a new or improved product, process, formulation, invention, software, or technique that increases performance, function, reliability, or quality.

2. Technological in Nature

The activity must fundamentally rely on the hard sciences, such as engineering, physics, chemistry, biology, or computer science.

3. Technical Uncertainty

At the outset of the project, there must be uncertainty about the capability to develop, the method of developing, or the appropriate design of the new or improved product or process.

4. Process of Experimentation

Substantially all of the activities must be undertaken to eliminate or resolve that uncertainty. This involves evaluating one or more alternatives through modeling, simulation, systematic trial and error, or other methods.

Which R&D Expenses Qualify?


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

Wages qualify when employees perform, supervise, or support qualified research. That includes conducting or executing the research, supervising those who do, and providing direct support.

2. Supplies

Tangible property used directly in research activities may qualify if it wasn’t capitalized or depreciated. A common example is raw materials used to build and test prototypes.

3. Contract Research

Amounts paid to a third party to perform qualified research on your behalf may qualify. To claim these costs, your business must:

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

Costs to purchase and maintain technology used in research may qualify. Payments to cloud service providers may also qualify when they relate 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: What It Means for Your R&D Credit

Recent tax law changes affect how R&D costs are deducted, and they interact with the credit. Domestic research is now governed by Section 174A, while Section 174 continues to apply to foreign research.

  • Domestic research: For tax years beginning after 2024, businesses can generally deduct domestic research costs immediately under Section 174A.
  • Foreign research: Costs for research performed outside the U.S. must still be amortized over 15 years.
  • Prior years: Businesses that capitalized domestic research costs in 2022 through 2024 may be able to recover the remaining amounts sooner, and some smaller businesses may be able to amend prior-year returns.

Whatever your situation, your credit claim and your deduction treatment need to line up. Inconsistent positions between Section 41 and Section 174 treatments can draw IRS scrutiny. MGO helps you evaluate both together so your credit strategy, cash flow, and compliance support each other.

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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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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

Support for ERC Claims, Reviews, and Audits

The Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit (ERTC), was created under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and later modified by additional legislation. 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 ERC services include:

  • Claim Review: Independent assessment of filed ERC claims for eligibility and documentation
  • Compliance Support: Guidance on ERC requirements and coordination with other pandemic-era aid programs
  • Audit and Controversy Support: Representation and response support for IRS audits and notices
  • Amended Return Support: Corrections when a claim needs to be adjusted or withdrawn

    Frequently Asked Questions About ERC Claims

    Is it too late to claim or fix an ERC claim?

    The deadlines to file new ERC claims for 2020 and 2021 have passed. But if you already filed a claim, we can review it for eligibility and accuracy, help you respond to IRS questions or audits, and advise on amended returns if corrections are needed.

    Can you claim the ERC 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 ERC claims.

    Will the IRS be examining ERC claims?

    The IRS has lengthened the assessment window for some ERC claims, and it continues to scrutinize them. 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.

    Image for R&D Tax Credits

    R&D Tax Credits

    Power innovation by reducing your tax liability with federal and state R&D tax credits. MGO helps you determine whether you qualify, document your qualifying activities, and claim the credit with confidence.

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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, MGO can take on as much or as little as you need. Our outsourced accounting services include:

    • Accounts payable and receivable
    • Bookkeeping, including 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 and Controller Services

    Whether you lead an early-stage business or a mature organization in transition, our CFO services provide experienced financial leadership when you need it most. Choose virtual, interim, or fractional support to fit your needs.

    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:

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

    Assess and strengthen your core business functions to stand out from the competition with support from our experienced professionals.

    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.