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.
The 1099-Misc form details the income but also notes that you have not deducted any federal, state, or other taxes from the income. It is important to accurately fill out the 1099-Misc form so that the IRS can appropriately tax the contractor's income. 1099-Misc form can also be used when someone makes royalty income. If this is the case, a 1099-Misc form must be filled out when a person makes at least $10 in royalties. The 1099 forms are used to help keep track of income and they are required for filing taxes.