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.
In other words, if others use your work to make money, you get money. Royalties are payments for use of intangible works (not services). You can also receive royalty income through investment in a mineral operation, like gas or oil. You can negotiate your royalties in different ways.