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.
Royalties are paid on a percentage of billings basis for certain of our products. During the three months ended March 31, 2005 and 2006, we deferred $822,000 and $994,000, respectively, of royalty expenditures and amortized $571,000 and $824,000, respectively, to cost of license and service revenue.