Hit by a ransomware attack? Your payment may be deductible
WASHINGTON (AP) — As ransomware attacks surge, the FBI is doubling down on its guidance to affected businesses: Don’t pay the cybercriminals.
But the U.S. government also offers a little-noticed incentive for those who do pay: The ransoms may be tax 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.
The Biden administration has pledged to make curbing ransomware a priority in the wake of a series of high-profile intrusions and said it is reviewing the U.S. government’s policies related to ransomware.