107% 4, 5. 6. [ [ NW 35072 SECTION 107, SURITY INPORMATLS AND COMFIDEN | UL SOURCES ¢ . Four-month evaluation of informants not paid on Bureau authority If the informant is nat being paid on Bureau authorization, a communi- cation must be transmitted.to the Bureau every four months after the af date of designation containing the same information set out above in . subsection 3b except those items concerning payments. Recommendation of SAC refarding continuance of informant should alsa 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 SAC's authority or on prior Bureav 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 .. ducing the course of a trial, the receipts will not relate to other documents or files. b. Receipts shovld clearly show: (1) Date on which payment was made 2) Perio” for which made when informant is paid on a period basis 3) Total amount paid broken down into separate amounts for services or expenses where these items are pertinent {3} Name of Agent making payment . 5 Signature of person receiving the money CG. recast pts are not to be witnessed by another Agent, d. If nec ry to make corrections on the receipts, sich correctic: must be isitialed by the informant and not by the Agent. e, When transmitting receipts and itemized statements of expenses to the Bureau, they shovid be stapled directly to the biue slip, leaving a margin of at least one inch to one and one~ha-7 inches at the top to avoid contect with the Acco fastener punch. ~ e staples shovld be placed in such a manner that the date or othe data appearing on the reetipt will not be mutilated and ell information on the receipt can be ¢xsily 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 ‘ivised that such compensation must be reported as incane when Paling an income tax return, . b. Since all informants are considered independent contractors, “. > they receive from the Bureau is self-employment income. but, si: -- . Bureau docs not consider their activity as-the carrying on of «.. :: or business, they may consider dispensing with the filing of a schcdule CG as part of form 1040 if they so desire. e. The informant!s own personal situation, however. should be taken into consideration.as he may receive inoome from: oti Sources as an inde- pendent contractor which would require the dedus-ion of self~employ— ment tax, regardless of any Bureau income he may receive. ad. In considering the filing of a tax on self-employment income, such a return is based upon -st earnings from self-employment of $400 or more, If an inforr % receives less than $400 from the Bureau and has no other self-.-. Loyment income, this money in any event - . is not subject to the :-°f~employment tax, If the infs-mant re~ , ceives $4800 or more fro: outside employment subject © Social Security tax, again the self-employment tax requirem-* . @o nat apply. . e. Bureau income should be set forth under item[SJon pes “ne of the Federal income tax return, form 1040, 2nd explained -o[ part schedule B,Jof the return es income received from ot. * sources 9r personal services rendered through a private enterpri:. or simil =z general term applicable to informant's position and station in life. 5-18-62 Doold: 32589529 Page 1426 . .
av 9 ~ 1078 SECTION 107 > INFORMANTS AND CONFI. ("TAL SOURCES , e 4, Four-month evaluation of informants not paid on Bureau authority If the informant is not being paid on Bureau authorization, a communi- . ° cation must be transmitted to the Bureau every four months after the : ( date of design»tion containing the same information set out above in subsection 3b except those items concerning payments. Recommendation of SAG regarding continuance of informant should also be set forth UAGR. In espionage and foreign nationality cases comment is necessary regarding only those appliceble items in subsection 3b, 5. Receipts . an . . - When payments are made to anyone for information or assistance on security matters, either on the SACfs authority or on prior Bureau approval, receipts ‘| ‘f 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 shovld be of such a nature that they will be self—sufficient so that, if it becomes necassary to introduce the receipts in evidence during the course of a trial, the receipts will not relate to other dccuments or files. , b. Keceipts 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 or expenses where these items are pertinent : 3} Name of Agent making payment ; 5 Signature of person receiving the money [ ¢. [Receipts are not to be witnessed by another Agent. { a. if necessary to make corrections on the receipts, such corrections f ' must be initialed by the informant and not by the Agent. ] . [ fe.] 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 stapies should de _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. Cas: must be taken that receipts are of such a nature that they clear’: show payment of money and do not refer to any other documentary . ‘erial contained in Bufiles, 6. 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, - me b. Since all informants are considered independent contractors, the income they receive from the Bureau is self~employment income but, sinoe the Bureau does not consider their activity as the carrying on of a trade or business, they may consider dispensing with the filing of a schedule C as part of form 1040 if they so desire, ce, The informants own personal situation, however, should be taken into consideration as he may receive inoome from other sources as an inde- pendent contractor which would require the deduction of self~employ- ment tax, regardless of any Bureau income he may receive. d. In considering the filing of a tax on self~employment income, such a return is based upon net earnings from self-employment of $400 or more, If an informant receives less than $400 from the Bureau and has no other self-employment income, this money in any event - is not subject to the self-employment tax. If the informant re- ° ceives $4800 or more from outside employment subject to Social Security tax, again the self~employment tax requirements do not apply. 7 . e.: Bureau income should be set forth under item 10 on page one of the Federal income tax return, form’104Q0, as "Other Income" and explained under schedule H(3) on page three 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, 20 10-13-51 NW 55072 Docld:329895299 Page 1427
107N 4. f - 5° 6. MW 55072 SECTION 107, SECuRITY INFORMANTS £ND CONPIDEY*TaL SOURCES BS #] & ‘ Four-month a of informents not paid on x ¥ authority - If the informant is not being paid on Bureau authorization, a 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 S#C regarding continuance of informant should 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, 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 meade when informant is paid on a period basis 3 Total amount paid broken down into separate amounts for services or expenses where these items are pertinent 4 Name of Agent making payment bs) Signature of person receiving the money ec. 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 all information on the receipt can pe 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, Since all informants are considered independent contractors, the income they receive from the Bureau is self-employment income but, since the Bureau does not consider their activity as the carrying on of a trade or business, they may consider dispensing with the filing of a schedule C as part of form 1040 if they so desire, ec. The informent!s own personal situation, however, should be taken into consideration as he may receive income from other sources as an inde~ pendent contractor which would require the deduction of self—employ— ment tax, regardless of any Bureau income he may receive, d. In considering the filing of a tax on self-employment income, such a return is based upon net ecarnings from self~employment of $400 or more, If an informant receives less than $400 from the Bureau and has no other self~employment income, this money in any event is not subject to the self-employment tax, If the informant re- ceives 34800 or more from outside employment subject to Social Security tax, again the self-employment tax requirements do not apply. e. Bureau income should be set forth under item 10 on page one of the - Federal income tax return, form 1040, as "Other Income" and explained under sohedule H(3) on page three of the return as income received from other sources for personal services rendered through a private enterprise ox similar general °term applicable to informantts position and station in life. : 20 . ‘ 9-12-61 Doold: 32389523 Page 1428 “see? Mase" ne | H | i { | i | | : | i 3 3 | F H Rm ne eh RET RNAI OPO EN ORICA SITET ORAL ORE PES TORTIE AN TOE OSTEO RYT SCOUTING FOTN ETRE HOT POAT OITOT EVRA ROTTER EELS TF LOR Ve Poh BIA TWNE Wad 96 RITES ENB DIELS Hoy see Darere vom wen wen ee:
| (Lom a ae dD. —— NW 55072 .Docld:32989999 Page "1429 — ~ 7¥ Cp eam ss go semewarepregemers 9 Umar es = ot SECTION 107, SECURITY INFORMANTS[AND CONFIDENTIAL SOURCES] ” . . XY = { °4, [Four-month saan Oy: sf informants not paid on 9. . Authority] t If the informant is not being paid on Bureau authorization, a communi- j : 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 SAC regarding continuance of informant should also be set forth, { {In espionage and foreign nationality cases comment is necessary regarding { _ only those applicable items in subsection 3bd.] . 5. Receipts . When payments are made to anyone for information or assistance on security matters, either on the SAC‘s authority or on prior Bureau approval, receipts must be obtained in every instance in which it is possible to do so. Receipts should be of such 2 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. sos : - Receipts should clearly show? 1 Date on which payment was made 2 Period for which made when informants is paid on a period basis 3 Total amount paid broken down into separate amounts for services or expenses where these items are pertinent ts} Name of Agent making payment 5 Signature of person receiving .the money . 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 all 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, . “ 6. Income tax returns . . - 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. Since all informants are considered independent contractors, the income they receive from the Bureau is self-employment income but, since the Bureau does not consider their activity as the carrying on of a trade or business, they may consider dispensing with the filing of a schedule C as part of form 1040 if they so desire, The informant!s own personal situation, however, should be taken into consideration as he may receive income from other sources as an inde— pendent contractor which would require the deduction of self—employ-~ ment tax, regardless of any Bureau income he may receive, In considering the filing of a tax on self-employment income, such @ return is based upon net earnings from self-employment of $400 or more. If an informant receives less than $400 from the Bureau and has no other self-employment income, this money in any event is not subject to the self-employment tax, If the informant re- ceives[$4800]or more from outside employment subject to Social Security tax, again the self-employment tax requirements do not apply. Bureau income should be set forth under item 10 on page one of the Federal income tax return, form 1040, as "Other Income" and explained under schedule H(3) on page three of the return as income received from other sources for personal services rendered through a private enterprise or similar general term applicable to informants position and station in life, 20 2-12-60 ase wer” ane