107% SECTION 10®@ SECURITY INFORMANTS AND conrz ez SOURCES 4, Fouremonth evaluation of informants not paid on Bureau authority Tf 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 SAC regarding continuance of informant shonid also be set forth UACB. ~ . In espionage and foreign nationality cases comment is necessary regarding only those applicable items in subsection 3b. 5. Receipts . : ; When payments are made to anyone for information or assistance on security matters, either on the SACfs authority or on prior Bureau approval, Sa GRD CE RAEN AAR UREN RE Bae opel Heh = Pee Ce.] When transmitting receipts and itemized statements of expenses to the Burean, they shovld 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. Car receipts ‘ { must be obtained in every instance in which it is possible to do so. [If a i [ receipt cannot be obtained for a particular payment, complete circumstances ‘ [ should be set forth on the blue slip at the time reimbursement is claimed. j , i a. Receipts should be of such a nature that they will be self~sufficient . bt so that, if it becomes necessary to introduce the receipts in evidence 5 during the course of a trial, the receipts will not relate ta other H dcecuments or files. 3 b. Receipts should clearly show: 3 2] 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 2 or expenses where these items are pertinent 3 {3} Name of Agent making payment ‘ 5) ‘Signature of person receiving the money t { c. [Receipts are not to be witnessed by another Agent. { [ ad. If necessary to make corrections on the receipts, such corrections i [ must be initialed by the informant and not by the Agent. ] i [ : 2 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, b. Since all informants are considered independent contractors, 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. c. The informant’s 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. 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 vunder 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, the income 20 10-13-61 55072 Docid: 32989529 Page 1531
i y ® SECTION 107. SECURITY INFORMANTS AND CONFIDENTIAL SOURCES 107N f. If the informant receives from outside employment less than $4800, ( all of which is subject to Social Security tax, the amovnt on which he will have to report for Social Security tax purposes, if he com pletes a schedule C, is the difference between the amount received from regular employment and $4800, If informant completes a schedule C, the nature of business of the self-employed must be stated and informants should be instructed to use as the nature of self-employment any applicable occupation with— ; out revealing connection with the Bureau. ° 7, Stipulation re payments made to witnesses @. In trials in which informants, former informants, or other persons who were paid sums of money are prospective witnesses, the Bureau must al Ae tl a a mM pe r . ; furnish the Department[a set of Photostats of the original receipts : [ signed by the prospective witnesses, The original receipts and a set t ‘ [ of Photostats will be transmitted to the field office in whose i [ territory the trial will take place.] The office handling prosecution i [ must determine from the{Government] attorney which individuals are 4 . to be used as witnesses. Thereafter the office should furnish and/or ‘ cause other appropriate offices to furnish to the Bureau the follow { ing information: i 1 The. correct, full name i 2) A&11 aliases, code names, and symbol numbers ( 3) The first date of contact by your office H 4 If 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,]} (6) A listing of any advances, refunds, and outstanding balances of advances . {2} The date of last contact by your office . ( 8 Whether the individual has been contacted by any other office b, Each individual and each item of information must be accounted Por. If no contact was made with a particular individual, the Bureau must be so advised, ‘¢, Where an informant has previously been used and a tabulation of pay~ ments was prepared, information for items (5) through (8) need de given only from the date of the last trial from whioh the in@ividual was used, . ad, 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 a, 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 compensstion, Where unemployment regulations require listing of all sources of income as a prerequisite for obtaining unemp] oyment compensation end security informants and/or sources who'st 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 a 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. b. Whenever a paid informant and/or. source becomes unemployed or has knowledge of impending unemployment, @iscuss 411 facts with him and submit observations and recommendations to Bureau, Unless aavised to the contrary by the Bureau, follow recommended action, Each office must assume the responsibility of guarding against informant'ts 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 cereors yb eRe TREER OTe OT TTP OR AER TTT A 21 HW 55072 Docid: 32989525 Page L15s2 10-13-40 . . . |
LO7N = 0 SECTION x) SECURITY INFORMANTS AND ee SOURCES protest his security, Fellow members of the pertinent subversive organization may be aware of his unemployment status and would expect him to apply. Where a state requires notification of Bureau payments to informants that would necessitate disolosure of their identity, then Bureau payments should be discontinued during the period they receive unemployment compensation benefits, . ‘ 9, Hendling money and property received by double agents ‘ a, 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 by the Bureau. Entirely separate arrangements must be made for payments to double agents for services rendered to the : Burean. Fi b, Any money or property received by a double agent from his principal : represents possible future evidence and the double agent should . ; execute a statement describing the money received by type of currency,. A denomination, series of issue, and serial number and appropriately deseribing any other property received, This statement should be signed by the double agent's code name, ec. Money or property received from double agents should be retained as evidence in accordance with section 3, part II, Manual of Rules and Regulations, : , Bureau Agents receiving such money or property from double agents should make independent records for retention for purposes of refresh~ ing recollection in the event testimony is later necessary, be TAR RET “on ae ne ida Py LP tae 0 yedinesd P. a Ton ane O. SEMIANNUAL LETTER . A semiannual letter should be submitted to the Bureau by each office as follows: . ; L. List the symbol numbers of all security informants and confidential sources being paid under[Bureau authority (not SAC authority)]}for ee ene eae ES = _“ { { services or expenses. If({thelconfidential source has no symbol é number, list his name. A [ 2. Also list the symbol numbers of all security informants[not paid , [ under Bureau authority. ] ; 5 3. Set forth any comments concerning the present status of the informant coverage of the office, together with information concerning what actions are being taken to improve the security informant coverage. 4. As a separate section of the semiannual letter, list under "Headquart . City" and each resident agency all subversive organizations broken don: 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 shoulé be shown relative to each unit. Oe : ThE uct eae toate le ue anak ee t Semiannual letters may include any additional pertinent information re i 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. Sr rr ag TAREE TONY Bees Wo EA Rana ees SER RDAY PAE OB SERA py Rn We RO 22 12-13~61 iw §5G72 Decld: 32999529 Page 1533
FSS ~Sasrpcess aw, ey IW SS072 SECLEION 107, (6) — pay Oo — (11) (12) SECURITY INFORMANTS AND CONFIDENTIAL SOURCHS 107¢ Informants should include. in the body of their statements specific dates and places; purpose of the meeting or activity being related; identities of speakers and persons present, plus their known status in any group; specific activity engaged in by each individual present; and comments made by each individual, Informant should identify each page at the bottom by affixing his code name. <Any corrections, erasurcs, changes, or additions should be identified[ by informant affixing his code name or the initials of his code name.] Agents! names should never appear on any page. ; Informant should refer to himself in the body of the statement by his true name and he should use the third person. . Agent receiving written statement should not make any corrections, additions, deletions, etc., thereto, nor should he place any markings thereon, such as his initials, date of receipt from informant, permanent symbol number of informant, file numbers, indexing symbols, etc, Do not block stamp or serialize. Receipt and serialization should be recorded on form FD-306 or on a channelizing memorandum which should contain the applicable items set forth on form FD..306, Extraneous material should be kept to an absolute minimum, Informants should leave out such items as: a) Any reference concerning the Director and the Bureau pb) References to other documents and statements submitted by the informant . (c) Obvious administrative material, such as operational instructions given by contacting Agent to informant These data should be furnished orally by informant to con tacting Agent who will record the information in memorandum form for the informant file. bd. Furnished orally by informant (12) Boocld: 32989525 Contacting Agent should promptly reduce information to writing so that it will be accurately recorded as contemporaneously as possible with the making of the oral statement by the informant to the Agent. The following items furnished by informant shoulda be left out: . 8 Any reference concerning the Director and the Bureau b References to other documents and statements submitted, by the informant (c) Obvious administrative material,- such as operational instructions given by contacting Agent to informant. These data should be recorded in memorandum form for thse inform ant file. Prepare on paper devoid of any Bureau markings or ider. “ication. Date it at the top with the date the informant furnish. the information to the Agent. No other date is desired except the date of the meeting or activity which shall be set forth in the body of the statement. Separate statements should be prepared for each meeting or each separate activity in which informants engage and should be dictated by the Agent as if the informant were preparing them himself, The information, after being reduced to writing, should then be read promptly by the informant and acknowledged by him by affixing’ his code name on each page. In espionage and foreign nationality matters authentication by informants is necessary only where future prosecution is possible a1 1-15-62 Page 1534