Hit by a ransomware attack? Your payment may be deductible

The IRS offers no formal guidance on ransomware payments, but multiple tax experts interviewed by The Associated Press said deductions are usually allowed under law and established guidance. It’s a “silver lining” to ransomware victims, as some tax lawyers and accountants put it. But those looking to discourage payments are less sanguine. They fear the deduction is a potentially problematic incentive that could entice businesses to pay ransoms against the advice of law enforcement. At a minimum, they say, the deductibility sends a discordant message to businesses under duress. “It seems a little incongruous to me,” said New York Rep. John Katko, the top Republican on the House Committee on Homeland Security.
Advertisement

Join the conversation as a VIP Member

Trending on HotAir Videos

Advertisement
Advertisement
Advertisement