The New York Tax Appeals Tribunal upheld the New York Division of Tax Appeals’ determination that an information technology security company provides a taxable protective service. The taxpayer provides monitoring and firewall management services, by configuring its customers’ software and devices to prevent malicious activity. The Department of Taxation and Finance asserted that the taxpayer’s services were taxable protective services, which include protection against any malfunction or damage to property. In upholding the assessment, the Tax Appeals Tribunal found that the taxpayer’s services prevented outside threats to customers’ networks, which falls within the statutory definition of taxable protective services. The Tribunal rejected the taxpayer’s argument that the services did not actively or directly guard or protect property, because the purpose of the taxpayer’s software and devices is to protect or guard customers’ networks from malicious activity.