You must get an IP PIN to file your current or prior year returns in 2015 if: 1  You received a CP01A Notice with your new IP PIN and you lost it, or. 2  You had an IP PIN in a prior tax year and you didnât receive a new one this year, or.
Royalty Payment to a Nonresident Alien. A royalty is income derived from the use of the taxpayer's property. A royalty payment must relate to the use of a valuable right. According to the IRS, tax must be withheld on the payment of royalties from sources in the United States.
To see why, itâs beneficial to understand how streaming royalties are generally calculated and paid: 1  The monthly revenue of a service (Spotify, Apple Music, et al.) is calculated. 2  Record labels have deals in place to get their royalty percentage flat, right off the top, so they receive their share of revenue first.