Security Program Assessments for Section 132 Benefits

This document is a guide that outlines the considerations and processes for organizations evaluating their executive security programs in relation to the Internal Revenue Code Sec. 132(d). It explains that employers can provide personal protection measures, such as security details and protective vehicles, which may qualify for favorable tax treatment under the working condition fringe benefit exclusion. To qualify, employers must demonstrate a bona fide business-oriented security concern and may need to conduct an independent security study. The guide details how Andersen's Compensation and Benefits Team can assist organizations in various aspects, including conducting independent security studies, determining proper income exclusions, developing comprehensive security programs, implementing safe harbor valuation methods for corporate aircraft, and reviewing compliance. It emphasizes the importance of substantiating executive protection costs through thorough documentation to withstand IRS scrutiny and meet governance expectations. The document concludes by highlighting the benefits of integrating a well-documented security program with an understanding of tax implications.