Ransomware Payments May Be Tax-Deductible

[T]he U.S. government also offers a little-noticed incentive for those who do pay: If you pay a ransom, it may be tax deductible.

The Internal Revenue Sservice offers no formal guidance on ransomware payments, but multiple tax experts interviewed by the Associated Press said deductions of ransomeware payments as a cost of doing business are usually allowed under law and established guidance. Some called it a “silver lining” for ransomware victims.

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There are limits to the deduction. If the loss to the company is covered by cyber insurance — something that also is becoming more common — the company can’t take a deduction for the payment that’s made by the insurer.

Extorted by ransomware gangs? The payments may be tax-deductible (CBSNews.com)

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