I have a question, and on the surface it may appear to be one of those smart-aleck questions...............but not really.
The reward for the apprehension and prosecution of the killer in this case is up to $200,000
Question: Will the IRS make the person who claims the reward pay income taxes on it, or is it tax exempt ?
According to the instructions for the form 1099-MISC: "A payment to an informer as an award, fee, or reward for information about criminal activity is not required to be reported if the payment is made by a federal, state, or local government agency, or by a nonprofit organization exempt from tax under section 501(c)(3) that makes the payment to further the charitable purpose of lessening the burdens of government. For more information, see Regulations section 1.6041-3(l) http://www.taxgirl.com/terrorist-informers-rewards-and-taxes/#sthash.00hcy5CY.LDugIW96.dpbs