Three Benefits of Obtaining an IRS 132 Assessment For Your Business

Updated: Sep 5, 2019


As Q4 looms in the immediate future, many are beginning to think about budgets and tax deductions. If these subjects are on your mind, you may want to explore the option of getting an IRS 132 assessment completed for your company.


First off, let’s discuss what an IRS 132 assessment is. The final 132 Assessment report is an easily understood document that addresses both macro and micro security concerns. IRS Section 132 provides tax exclusions for qualified services such as security and protection plans. Because the tax treatment of fringe benefits can vary depending on the facts and circumstances under which they are provided, it may be beneficial to conduct a full IRS 132 analysis to help offset the cost of your corporate security program.


According to the IRS, if a security concern exists which is found to be business related, that company may exclude certain expenditures related to an at-risk employee. Furthermore, this benefit applies to executive security programs if an overall security program will be deemed to exist in situations where the employer conducts and implements an “independent security study” with respect to the at-risk employee.


Increased Insight


A huge benefit for obtaining an IRS 132 assessment for your business is the increased insight it provides. An IRS 132 assessment provides businesses with insight on potential threats and security inefficiencies. This assessment will provide exhaustive analysis and detailed observations about business operations, and will identify current threat conditions and lifestyle dynamics to determine the resources required to establish and implement an effective and reasonable security program.


Strategic Planning


An IRS assessment does more than just provide insight; it provides recommendations for how to proactively mitigate risk going forward. In addition to the insight this assessment provides, you will gain actionable strategies that can be implemented right way. These recommendations are based on industry best practices and CAI’s proven experience with developing customized security and threat protection programs. We’ll take the identified risks and routines we evaluated to work alongside you to create a unique and effective security strategy based on your business needs.


Offset Costs


When it comes to budgets, security and threat protection programs can be costly. Quality services require highly trained specialists. These professionals are worth the price tag, but can throw off budgets if a company hasn’t allocated resources accordingly. Fortunately, getting an IRS 132 assessment can help offset those costs. As long as the assessment highlights a risk to business security, various expenses can be deducted.


Some examples of tax deductible expenses uncovered in IRS 132 assessments include:

  • Estate Security:

  • Home Intrusion Detection Systems

  • Residential Security Guards

  • Safe Rooms


  • Ground Transportation:

  • Security Drivers

  • Chauffeurs


  • Air Transportation:

  • Commercial & Private Flights

  • Traveler Tracking


  • Special Risk Insurance:

  • KR&E Insurance


  • On-Going Threat Analysis:

  • Security Analyst


  • Office Security:

  • Executive Suite Security IRS 132



Want to learn more about how your business can benefit from getting an IRS 132 assessment? At Cooke and Associates, we use risk mitigation strategies to identify and assess vulnerabilities or potential gaps facing any operation. Our goal is to be proactive, identify potential issues, and create solutions for any unique challenges you may face before they become ongoing issues.


Email us directly at information@cookepi.com to further discuss any potential assessments!

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CA PI Lic 23783  & CA PPO Lic 14972

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