Tax reimbursement for ransomware payments

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As many companies are falling prey to Ransomware Attacks in the United States these days, there is a high probability that such payments might earn the victim a tax reimbursement from the Internal Revenue Service (IRS) as per the little-known legal clause.  

 

Meaning, those who are bowing down to the demands of hackers by making a ransomware payment in cryptocurrency- may take up a tax claim if all the payment procedure falls into the legal practice.

 

However, doesn’t this encourage crime and witness a rise in fake ransomware payments and SEC filing.

 

Well, tax consultants and accounts feel that the new legal draft might encourage crime and may not last long in practicality as IRS will be forced to make amendments paving way for the rise of new issues like crime encouragement and self-serviced cyber attacks.

 

Robyn Walker, a spokesperson of the Internal Revenue Service acknowledged the plan of drafting a bill that offers tax reimbursement to companies falling prey to file-encrypting malware attacks in a financial year in particular.

 

Going forward, the Biden Administration seems to have taken the cyberattacks on Colonial Pipeline and JBS Meat on a serious note. And so is interested in paying back the victims in one way or the other.

 

But do you think that the tax repayment for ransomware attack victims will work in favor of them for sure….?

 

Note- Some Cyber Insurance companies like AXA have already announced to the world that they are not interested in repaying any of the insurance amount to companies and institutes falling prey to malware.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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