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.
Freehold gas royalties have been paid based on the price received for the gas and gas by-products at the point of sale after deducting all of the costs incurred by the oil company-lessee between the point of production and the point of sale.at the wellheadâ or âon the landsâ of all leased substances produced and marketed. Based on this common clause, the oil and gas industry has historically applied radically different methods to the calculation of deductions from freehold oil and gas royalties.