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.
Thatâs how the author gets paid, ultimately, if the book becomes a successful bestseller. Whatâs more, the royalties the publisher expects the book to earn determine the advance the publisher will pay the writer up front. Royalty Accounting Only Starts Off Simple. Royalty calculations start out pretty simple. Royalties get calculated by multiplying the price of a book by the royalty percentage. Sometimes, the price used in the calculation is the retail price that the customer pays for the book in some bookstore. Assume that youâve written a book that retails for $20.