Security Risk Consultancy
• Independent Security Study
Are Bodyguards, Home Security Systems and Corporate Jets Taxable Benefits for Executives or Deductible Expenses?
We've been successful in full-filling IRS statutory requirements related to personal protection by validating both the preferred vendor and the needs of the protected client. We identify factors that exceed normal life and that require additional resources and support to maintain safety for the protected client and their assets.
How does the IRS view your expenditures on personal protection: as legitimate corporate expenses or as a benefit to the principles and officers of the company and therefore taxable on their personal returns?
The answer depends on whether the risks to the principle(s) are real – and confirmed by an independent assessor.
Potter & Co. specializes in conducting independent security studies as directed under the IRS code and corresponding Department of Treasury Regulations in order to determine if there is a “bona fide business-oriented security concern” which warrants the existence of a security program for select executives or individuals.
How do we help?
We deploy a rigorous fact-finding and analytical technique to identify, assess and manage organizational risks, threats and vulnerabilities confronting your business using the techniques below.
1. Independent Security Study Aligned with IRS Requirements
Assessment of a company’s executive protection security capabilities in a manner tailored to fulfill the Internal Revenue Service statutory requirements as they relate to validating employer-provided transportation for security concerns, business-oriented security concerns and overall security programs as set forth in Title 26, Code of Federal Regulations, Treasury Regulation Section 1.132-5. Comprehensive, highly intensive and best practice-based assessment of all facts and circumstances relating to the safety and security of employer-provided transportation and security programs – with guidance on integrating the critical issues, challenges and best practices fundamental to maintaining a full-service program.
2. Executive Residence Security Assessments
Evaluation of protection-related issues for a select senior executive’s primary residence, work and travel circumstances, vehicles and lifestyle. Areas evaluated include the residential compound or location; transportation modes and routes; travel requirements; international and domestic venues visited and existing support capabilities. Recommendations address any need for risk management strategies and technical capabilities, such as alarms, closed-circuit television, protective fencing and lighting or similar methods of controlling access to the residence.
Do you know what it takes to make that determination according to the IRS?
You need to demonstrate to the Internal Revenue Service that a Title 26, CFR-compliant “bona fide business-oriented security concern” exists.
What does Title 26, Section 1.132-5 actually mean?
What is needed to meet the requirements?
What is considered a bona fide business-oriented security concern?
All these questions and more will be answered and vetted through our Independent Security Study.