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.
Very soon it may be out of date, but this is the way it has been for decades. Most publishers pay the royalty based on the cover price (or retail price) of the book. CBA publishers usually pay royalties based on the NET price of the book, that is, the price at which the publisher sold the book to the bookstore. Royalty rate: 10% of retail = $2.50. You make $2.50 on every book sold.