Case Study: a California-based financial services company achieves $2.4 million in tax savings with MGO

a California-based financial services company preserves $2.4 million in QSBS tax savings with MGO

The customer, a California-based financial services company, faced a critical challenge after selling its business. The business owner believed his shares qualified for a significant federal tax exclusion under Section 1202, but a review by vendor MGO (Macias Gini & O'Connell LLP) revealed the shares were not properly authorized under California law, putting millions in potential tax savings at risk just weeks before the tax filing deadline.

MGO coordinated a multidisciplinary solution, working with legal counsel to retroactively ratify the stock issuances and amend the transaction documents. This intervention successfully validated the shares for Section 1202 eligibility. The result was a recovery of nearly $2.4 million in federal tax savings for the client and a transaction structure that reduced future audit exposure.

California-based Financial Services Company