[swatthatfly]

I always wondered how you do paperwork for something like this. It must be a nightmare from an accountant perspective. What is the bill code for "blackmail" when you file the income tax and you write a 6 figure expense. In the end your cash has to balance out, you cannot not declare it. Anybody with experience in something like this?

[dublinben]

At least for the IRS, you can deduct money paid out for ransom, blackmail, or other forms of theft.

http://www.irs.gov/publications/p17/ch25.html#en_US_2011_pub...

[Demiurge]

isn't there something fringe like 'theft' or miscellaneous losses?

[TheCoelacanth]

Having a code for theft is definitely a thing. For many businesses, having a small amount of theft is just an unavoidable cost of doing business.