Ia aOR LY SOT LOSS COW STR ECEES ERENCE CO TO EME | Pa ee Da Te AGES, et ee a ev ap ene SPE sey re ern 7. te.] Stipulation re payments meade to witnesses a. de Co do ae SECSION 107; Decency TNPORMALTS any comm Qua: SOURCES 1078 When an informant or former informant is initially considered as a potentiel witness in a Bareau cace, determine whether he paid Federal and state taxes on the income he received from the Bureau for his services, Tf such taxes have not been paid, obtain all pertinent details and promptly submit recommendations for handling the situation. In trials in which informants, former informants, or other persons who Were paid sums of money are prospective witnesses, the Bureau must furnish the Department a set of photostats of the original receipts signed by the prospective witnesses. The original. receipts an@ a set of photostats will be transmitted to the field office in whose territory the trial will take plece. The office handling prosecution must determine from the Government attorney which individuals are to be used as witnesses. Thereafter the office should furnish and/or cause other appropriate offices to furnish to the Bureau the follow- aug information: i The correct, full name 2 Al1L aliases, code names, and symbol numbers 3 The first date of contact by your office : 4 Tf first contact was prior to September, 1944, the names of all SAs, SACs, and ASACs who contacted and may have made payments (5) A tabulation of all payments, broken down as to the amount appli- cable to services and the amount applicable to expenses. Although tabulations are not furnished to the Department, those prepared by your office will be reconciled with Bureau records. (6y A listing of any advances, refunds, and outstanding balances of advances 17} The date of last contact by your office 8 Whether the individual has been contacted by any other office Each individual and each item of information must be accounted for. If no contact was made with a particular individual, the Bureau must be so advised.e Where, an informant has previously been used and a tabulation of pay~ ments was prepared, information for items (5) through (8) need dé given only from the date of the last trial from which the individual was used, The above information should be submitted separate and apart from correspondence setting forth derogatory information, and should be addressed to the attention of the Administrative Division, Voucher Unit. Interdivisional correspondence should be addressed to the Bureau with copies designated for the interested offices, Receipt of unemployment compensation At times security informants and/or sources temporarily lose their jobs with private industry due to strikes, economic conditions, or similar circumstances, As a result they become eligible for unemployment compensation, Where unemployment regulations require listing of all sources of income as a prerequisite for obtaining unemployment compensation and security informants and/or sources who at the time are being paid by the Bureau for services rendered fail to comply, ‘the situation is potentially embarrassing, The Bureau cannot be- placed in the position of condoning 2 violation of the state law on the part of any informant or source, Each field office must determine from state unemployment compensation officials effect of unemployment compensation laws on paid informants and/or sources. Depending on local requirements, informants and sources must be alerted.accordingly. 21 9-18-64 ; NW 55072 Doold:32989525 Page Lib2 . . | y . -
Ss ieeiadel Anat ented Se OE od | Bw 55072 LO7N ~ 0 SECLZON 107, SECURITY INFORMANTS AND CONFIDENTIAL SOURCES b. Whenever a paid informant and/or source becomes unemployed or has knowledge of impending unemployment, discuss all facts with him and submit observations and recommendations to Bureau. Unless advised to the contrary by the Bureau, follow recommended action. Each office must assume the responsibility of guarding against informant's accepting a Bureau payment that would conflict with unemployment compensation laws, At the same time, weigh seriously the possible need for an informant to apply and accept unemployment compensation to protect his security. Fellow members of the pertinent subversive. or 2igation may be aware of his unemployment status and would expect hi- to apply, Where a state requires notification of Bureau payments tc informants that wovld necessitate disclosure of their identity, then Bureau payments should be discontinued during the period they receive unemployment compensation benefits, 9, Handling iaoney and Property received by double agents @o Double agents must turn over to the Bureau any money or property received from their principals in connection with the double agent intelligence operation, This should be made clear to the double agent at the inception of the operation (consider obtaining a signed statement to this effect), Exceptions to this rule must be specifi-~ cally approved *+ the Bureau, Entirely separate arrangements must be made for payments to double agents for services rendered to the Bureau, b. Any money or property received by a double agent from his principal represents possible future evidence and the double agent should execute 2 statement describing the money received by type of currency, denomination, series. of issue, and serial number and appropriately describing any other property received, This statement should be signed by the double agent's code name, C, Money or ‘property received from double agents should be retained as evidence in accordance with section 3, part IT, Manual of Rules and Regulations. . ad, Bureau Agents receiving such money or property from double agents - should make independent records for retention for purposes of refresh~ ing recollestion in the event testimony is later necessary. SEMITANNUAL LETTER A semiannual letter should be submitted to the Bureau by each office as follows 1. List the symbol numbers of all security informants and confidential sources being paid under Bureau authority (not SAC authority) for services or expenses. If the confidential source has no symbol - number, list his name. - 2. Also list the symbol numbers of all security informants not paid under Bureau authority. 3., Set forth any comments. concerning the present status of the informant coverage of the office, together with inf+ nation concerning what actions are being taken to improve the security ir ‘srmant coverage. . 4. As a separate section of the semiannual letter, list under "Headquarters City" and each resident agency all subversive organizations broken down into each division and unit thereof, such as clubs, committees, and chapters, Under each unit the approximate membership, together with the symbol numbers and positions of security informants affording coverage, should: be set out. Where no informant coverage exists or where coverage is provided by informants or sources who are not members, such factors should be shown relative to each unit. Semiannual letters may include eny additional pertinent information re informant coverage that may be helpful in over-all evaluation, such as informants in-other divisions who are occasionally utilized and highly placed informants who furnish area-wide, national, or international © information. 22. DeclTd: 329895259 Page 1563 5-18~62
cee A wae ng 2 ee EAE AR oe HEE Oe a5 eon Blog toe De aaeenee pene SERENE TNT Oct REO eH IER Rant OD AR mE sa 2 a eererecinentnartmedtlne niet rs amen “eA SPA eRe ana namramaannanasenareanm atin my aeineis Rett NW 55072 3 mers é SECTION § . SEQORTYY INPORMANTS ARO CONFIDENTIAL SOURCES LO7N (2) Residence ani camloyment (Ff no change since last justification Letter, morciy state "no change.") . (3) Current membership[und position heldjin subversive organizati ons {L(When justification is submitted for racial informants, sub- stitute the word "racial" for the word "subversive.")] (4) Summary of information furnished and/or services rendered during pertinent period (5) Amount paid for services and expenses by month . (Initial justification letter should set forth amount, if any, ever peid under SAC authorit:.) type and nunter of meetings ¢ Number of written and oral 3% (List. separatet;.; Information fuimished of unusual value Approximate number of persons on whom informant furnished coverage - and their impor’ ance Steps being taken to advance informant Stability and reliability . : (Set forth personal weaknesses, domestic difficulties, indications of untrustworthiness or unreliability, or other similar problems presented by informant, and steps being taken ta prevent any such situations from later becoming source of embarrassment to the Bureau, ) (12) Indoctrination against disclosure (State whether every opportunity has been taken to properly indoctrinate informant egainst making any disclosure of his relationship with Bureau through any media. ) ) All necessary action taken on information furnished 14) Miscellaneous (Any other matters concerning informant's operation which should be brought to Bureauts «ttention) ez) ° ttuended and other activity etements submitted 3 | oe ~_—_ Nee ro Nemes] ee ed (Where applicable, substitute potential informant, confidential source, panel source, or source of information for the word "informant. ") When payment to an informant has been authorized for a definite : period of time, advise the Bureau at least two weeks in advance of the expiration of the period for which payment hes been authorized as to whether the services of the informent are to be continued, Every four months a letter of justification should be submitted to the Bureau requesting continuation of payments. Follow form in subsection 3b. - Letters requesting authority to continue (increase, decrease) payments to an informant should be submitted in duplicate except that the copy should consist only of the first page of the letter. When payments as requested by the field are approved, the single—page copy will be stamped "Approved" at the Bureau and returned. If the recommendation is not approved, correspondence will be prepared and transmitted to the fiela. , In order for this system to function properly, payment Letters must be explicit. . . When payments are :uthorized by the Bureau, it is the personal responsi~ pility of each Sic definit tely to'assure himself that full value is being received. , Discontinuance of payments - If at any time it appears the informetion being produced by the informant is not commensurate with the payments being made to him, the payments should be immediately discontinued or adjusted accordingly and the Bureau promptly advised. Extraordinary expenses - ; In connection with the operation of paid informants, if any extraor- dinary expenses are anticipated for which approval has not been given, obtain specific Bureau authority. 19 10-13-61 Docid: 32989529 Page 1564
ee ee PS 1LO7N 4. 5. 6. C { | HW 55072 Docld: 32989529 Page 1565 SECELON 107. Qu INFORMANTS AND conrrp enn SOURCES Four-month evaluation of informants not paid on Bureau authority Tf the informant is not being paid on Bureau authorization, 2a communi- . cation must be transmitted to the Bureau every four months after the ( date of designation containing the same information set out above in subsection 3b except those items concerning payments, Recommendation -of SAG regarding continuance of informant shovld also be set forth UACB, In espionage and foreign nationality cases’ comment is necessary regarding only those applicable items in subsection 3b. Receipts . . . - When payments are made to anyone for information or assistance on security matters, either on the SACfs authority or on prior Bureau approval, receipts must be obtained in every instance in which it is possible to do so. If a receipt cannot be obtained for a particular payment, complete circumstances should be set forth on the blue slip at the time reimbursement is claimed. a. Receipts should be of such a nature that they will be self-sufficient so that, if it becomes necessary to introduce the receipts in evidence during the course of a trial, the receipts will not relate to other documents or files. b. Receipts should clearly show: 1) Date on which payment was made 2) Period for which made when informant is paid on a period basis 3) Total amount paid broken down into separate amounts for services t or expenses where these items are pertinent 3} Name of Agent making payment (5 Signature of person receiving the money c. Receipts are not to be witnessed by another Agent. d. If necessary to make corrections on the receipts, such corrections must be initialed by the informant and not by the Agent. e, When transmitting receipts and itemized statements of expenses to the Bureau, they should be stapled directly to the blue slip, leaving a margin of at least one inch to one and one~half inches at the top to avoid contact with the Acco fastener punch. The staples should be placed in such a manner that the date or other data appearing on the receipt will not be mutilated and 211 information on the receipt can be easily read without detaching it from the blue slip. Care must be taken that receipts are of such a nature that they clearly show payment of money and do not refer to any other documentary material contained in Bufiles. Income tax returns a. Informants who receive compensation for their services to the Bureau should be advised that such compensation must be reported as income . when filing an income tax return, , [b.] Bureau income should be set forth under item 5 on: page one of the Federal income tax return, form 1040, and explained under part V,[3,] schedule B, of the return as income received from other sources for personal services rendered through a private enterprise or similar - general term applicable to informant!s position and station in life. [c. If the informant is self-employed and files a schedule C as a self- employed individual, it may be possible to include his Bureau income with his self-employed income from other sources without revealing connection with the Bureau, d. Effective 1-1-65, in those instances in which the informant cannot report payments received from the Bureau for services without jeop- ardizing his security as an informant, such payments will be subject 2 to a 20 per cent withholding tax. There are four categories of - circumstances in which taxes will not be withheld. Taxes are not to ~ be withheld from payments made (1) to other than security informants and sources, (2) for reimbursement of expenses, (3) under SAC - authority, or (4) to informants who have been able to report Bureau rs income on their Federal tax returns without jeopardizing their security or without challenge from the Internal Revenue Service, Bach office has detailed instructions and exhibits concerning the procedure to be followed in the handling and control of money withheld, ] 20 9-18-64