Protecting the C-Suite from the Tax Man
If Executive Protection is one of your security roles, you need to be up to date on the latest best practices to maximize security and minimize risk—in the most cost-effective and efficient way possible. An Independent Security Study will help select executives in your company avoid unnecessary tax liability and at the same time assess your company’s security environment while providing great value to you in your role as a corporate security professional.
Why Do You Need an Independent Security Study?
Your Executive Protection might include air travel, airport protection, ground transportation, and a travelling protective detail to ensure the safety of company executives, especially if they travel internationally. The IRS will tax the gross income of those executives for transportation security costs—unless you can show a bona fide business-oriented security concern for the protection provided. An Independent Security Study meets the necessary requirements for the IRS to avoid this tax—and saves your CEO money.
You Can’t Conduct the Study Yourself
An important part of the IRS compliance is that the study is done by an outsider, e.g., independent consultant. You can’t conduct your own assessment. The Independent Security Study is based on an objective assessment of all facts and circumstances and the employer applies the specific security recommendations contained in the security study to the employee on a consistent basis.
An Independent Security Study Benefits You and Your Organization
The net result of the Independent Security Study conducted by an independent consultant is an evaluation of your personnel, programs, policies, technologies, operations, and current security environment to identify areas of strength along with opportunities for improvement. In addition, your compliance with the IRS showing the security you provide your executives is part of an overall security program also benefits you and your organization.
What Are the IRS and Tax Connections to the Study?
The Independent Security Study is tailored to fulfill IRS statutory requirements as they relate to validating employer-provided transportation for business-oriented security concerns and overall security programs. The Independent Security Study documents employer-provided transportation for security concerns for corporations seeking to specifically exclude security-related cost and items from the executive’s gross income.
