Hit by a ransomware attack? Your payment may be deductible

By Alan Suderman and Marcy Gordon | Associated Press

WASHINGTON — 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. 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

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