Interesting Fact of the Day

From an article by Miranda Devine in the New York Post:

" The FBI spends an average of $42 million each year in payments to its Confidential Human Sources, according to the Department of Justice Office of Inspector General, which has raised concerns about the vetting process for these paid informants."

Apparently, the CHS are not employees of the FBI but they could well be employees of other federal agencies, including the Department of Justice. In fact, that seems highly likely. Since this information isn't public the public has no way of knowing. There's a possibility that the $42 million pot of cash could be used as a bonus for cooperative fellow feds. Or, as in the case of Boston hoodlum Whitey Bulger, influential criminals are paid for information on their accomplices and rivals. 

The monetary information means that CHS informants are paid, probably in US funds. How are these rewards explained to the Internal Revenue Service? Are taxes withheld as they would be for employees? There surely must be some paperwork that must be filed with a 1040a.