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.
A royalty payment is made to the legal owner of a property, patent, copyrighted work or franchise by those who wish to make use of it for the purposes of generating revenue or other such desirable activities.In most cases, royalties are designed to compensate the owner for the asset's use, and are legally binding.REAKING DOWN 'Royalty'. Royalties are often expressed as a percentage of the revenues obtained using the owner's property, but can be negotiated to meet the specific needs of an arrangement.