Ransomware payment may be tax deductible

WASHINGTON: As ransomware attacks surge, the Federal Bureau of Investigation (FBI) is doubling down on its guidance to affected businesses: Don't pay the cybercriminals. But the US government also offers a little-noticed incentive for those who do pay: The ransoms may be tax-deductible.

The Internal Revenue Service (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.