CD Weissenberg

It appears that the IRS has authority to grant initial tax exempt status approval for 501(c)(3)’s but then has no requirement to maintain any subsequent records regarding informant fees paid through those same tax exempt organizations because the agency paying the informant is not required to report it to the IRS even as an annual total sum budget figure. Would appreciate a second opinion on my interpretation of Ms. O’Reilly’s response. Thanks!

JPat Brown

Hello! Going off what we learned from Equitable Sharing - https://www.muckrock.com/news/archives/2014/nov/10/asset-forfeiture-article/, agencies (at least police agencies) do have an informant budget they report, at least internally. Might I suggest requesting any IRS documents/policy for handing informant fees?