Ransomware payments using Bitcoin, deductible?
Something I read recently described a "ransomware negotiator", someone who serves as an intermediary (kind of) between the affected business and the ransomware perpetrator. There still has to be some level of trust to complete the transaction.
I also saw a headline about US Treasury regulations making ransomware payments illegal, at least in some circumstances (I didn't go into the details).
For purposes of ยง162(c)(2), are ransomware payments tax deductible for a business?
If the payer (the taxpaying business) cannot provide any documentation as to the identity of the payee, since the payment was made anonymously via Bitcoin, are record-keeping requirements met? Yes, I know about the Cohen rule, but what would prevent an owner of the business from secretly ransom-waring their own company, and collecting the Bitcoin ransom as tax-free income?
I also saw a headline about US Treasury regulations making ransomware payments illegal, at least in some circumstances (I didn't go into the details).
For purposes of ยง162(c)(2), are ransomware payments tax deductible for a business?
If the payer (the taxpaying business) cannot provide any documentation as to the identity of the payee, since the payment was made anonymously via Bitcoin, are record-keeping requirements met? Yes, I know about the Cohen rule, but what would prevent an owner of the business from secretly ransom-waring their own company, and collecting the Bitcoin ransom as tax-free income?
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