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  • Pricing and Royalty FAQ


    Will I make money when my book is sold online through Palibrio?
    Yes, you can make money by selling your book. You will earn a royalty amount when your book is sold through Palibrio, as well as other retailers. In fact you have the option to choose how much royalty you earn per book sold. Review the rest of this FAQ page for more details about how and when you are paid. Bear in mind that royalties will not be paid to you for those copies of the book that you acquire under the author's discount.

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    What is the author’s royalty percentage?
    The author receives 50% of the digital net payments received from sales of the eBook. Royalties will not be paid on copies provided free of charge or sold to the author. You will always receive 50% of the digital net sale when sold. (Therefore, if sold on Palibrio.com at $3.99, you will receive $2.00. If sold in the retail channel at $3.99, the channel discount (varies by partner) will be deducted from the sales price and you will receive 50% of what is left.

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    Will I be paid a royalty even if I live outside the United States?
    Yes, you will be paid a royalty even if you live outside the United States or are not a U.S. citizen. (There is only a slight difference in the laws of taxation. Read the FAQ about this below for details.)

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    How is the price of my book determined?
    We will provide a proposed retail price for the sales of your work in the distribution channel. The retail price we suggest is a proposed price, and you are responsible for accepting our suggested retail price or setting a different retail price for each format of the Work, as long as the final retail price is within the threshold we have set.

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    What is "distribution cost" in self-publishing?
    The distribution cost is calculated by the costs involved in offering your book for purchase through various channels. These costs include maintaining your book on a Web site, keeping information current, order fulfillment, customer support and any other processes to ensure that your book is available to others.

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    How does Palibrio calculate royalty payments?
    Palibrio gives authors a royalty rate of 10% through our distribution channels for print and audio formats. Royalties are based on the payments we actually receive from the sale of printed or audio copies of your book, less any shipping and handling charges or sales and use taxes. Also, we offer discounts to retail and wholesale customers, so the royalty amount you receive depends on what type of customer bought your book and any discount they received. For each royalty-qualifying sale in a print or audio format through our website bookstores, you will receive 25% of the retail price.

    You should be aware that the largest retailers, including Barnes & Noble and Amazon, place orders for Palibrio titles through Ingram; those orders will appear as wholesale sales on your royalty statement.

    Here's an example of a common sales transaction of a printed book:

    • The retail price (list price) for your paperback book is $15.95.
    • Your Palibrio royalty rate for retail transactions is 10 percent.
    • A retailer, such as Amazon, places an order for your book through Ingram Book Company, a wholesaler.
    • Ingram then resells the book to the retailer.

    Your royalty on this retail sale is calculated as follows:

    Source Paperback list price Royalty % Royalty Earned
    Amazon.com $15.95 10% $1.60

    If your book is sold directly through the Palibrio bookstore, you receive a higher royalty amount. Your royalty on this sale directly through the Palibrio bookstore is calculated as follows:

    Source Paperback list price Royalty % Royalty Earned
    Palibrio website $15.95 25% $3.99

    For each royalty-qualifying sale of your work in digital format (eBook), you will receive 50% of the digital net, less any returns. The digital net equals the retail price less promotional discounts, distribution discounts, and sales taxes.

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    Minimum Threshold for Payments
    If your quarterly determination of royalties in any calendar year exceeds seventy-five ($75) dollars, the payment shall be issued according to the quarterly payment schedule. If the quarterly royalties due are equal to or less than seventy-five ($75) dollars, the quarterly royalty amount will be carried forward and added to the subsequent quarterly royalty amount due. Until cumulative author royalties exceed seventy-five ($75) dollars, each quarterly author royalties will be carried forward and added to the cumulative author royalties. Cumulative author royalties at the end of a calendar year will be issued by February 28.

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    Can I receive a discount depending on the volume of purchase of my book?
    Yes. As an author of Palibrio, you can purchase the book at a discounted price. The discount is greater, depending on the book samples acquired – up to 65% discount of the suggested price of sale. The price of the cost of the book will depend on the book’s number of pages, type of publication: paperback or hard cover, full color or black and white.

    Discount for paperback books:
    Number of copies Discount
    First 150 + books ordered
    1-24 30%
    25-49 35%
    50-99 40%
    100-249 45%
    250-499 50%
    500-999 55%
    1,000-1,999 60%
    2,000+ 65%

    Discount for hard cover or full color books:
    Number of copies Discount
    1-24 20%
    25-49 30%
    50-99 35%
    100-249 40%
    250-499 45%
    500+ 50%

    * Book orders must be for one title with the same format (paperback, hard cover, color, black and white) and sent to the same mailing address. All bulk discounted orders must be prepaid. Author’s purchases are copyright exclusives and non-returnable. It does not include the discounts acquired from author events (presentations, book signings, etc.). The shipping cost is not included. The discounts are applied based on the price sale of your book.

    **The 50% special discount for the first 150 or more orders will not be applicable for orders made online. To receive this discount please get in touch with the department of book orders.

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    When do I choose my book's price?
    The price of your book will be determined after the manuscript and cover are approved (it is necessary to know the final number of pages for the exact calculation).

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    Can I change the price of my book later?
    After the Retail Price is set, we reserve the exclusive right to modify the retail price of the work, should production costs change or market conditions warrant. You must approve such retail price change prior to it taking effect. If you do not approve the retail price change or we cannot contact you to obtain approval for the retail price change, all or certain formats of the work will be removed from distribution.

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    Can I decide the price of my e-book?
    According to the author’s agreement, all e-books will have a default price of $3.99. The only way for the e-book to have a price lower than $9.99, is if the book with a paperback format had a lower price in the market.

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    How am I paid for my royalties?
    Royalties are calculated each calendar quarter, and payments are processed per the following schedule: first quarter (for sales January through March) payment by May 31, second quarter (for sales April through June) payment by August 31, third quarter (for sales July through September) payment by November 30, and fourth quarter (for sales October through December) payment by February 28 of the subsequent year. The timing of actual receipt of the payment by the author may occur after these issuance dates, due to a variety of factors including, but not limited to, transit time in the mail.

    If your quarterly determination of royalties in any calendar year exceeds seventy-five ($75) dollars, the payment shall be issued according to the schedule above. If the quarterly royalties due are equal to or less than seventy-five ($75) dollars, the quarterly royalty amount will be carried forward and added to the subsequent quarterly royalty amount due (cumulative author royalties). Until the cumulative author royalties exceed seventy-five ($75) dollars, each quarterly author royalties will be carried forward and added to the cumulative author royalties. Cumulative author royalties at the end of a calendar year will be issued by February 28.

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    When am I paid royalties? When do quarters start and end?

    We pay royalties on quarterly basis:

    • First Quarter: From January 1 to March 31 (checks are mailed in late May)
    • Second Quarter: April 1 to June 30 (checks are mailed in late August)
    • Third Quarter: July 1 to September 30 (checks are mailed in late November)
    • Fourth Quarter: October 1 to December 31 (checks are mailed in late February)

    You are paid for the books and shipped in the given time frame. If a book was purchased online on March 30, but the book was not actually printed and shipped until April 2, then you would be paid in the second quarter, not the first, since the book didn’t ship until the second quarter.

    You will only be paid once for the original book sale. For instance, if a book is resold in any kind of second-hand store, you will not earn royalty when a retailer purchases your book for their store (when the book is printed), but not when the consumer actually purchases the book off the shelf.

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    How long does it take to receive payment?
    It takes about two months after the quarter closes until the royalty payments are sent to you. First Quarter checks are mailed in late May, Second Quarter checks are mailed in late August, Third Quarter checks are mailed in late November, and Fourth Quarter checks are mailed in late February.

    We do not receive the information reporting sales through distribution until 30 days after the close of the quarter. Then, we need additional time to verify, compile and send out the information to you.

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    Can my royalty check be split between a co-author and myself?
    No, we currently do not offer the option to split the royalty payment between individuals. This is due to tax restrictions. You can, of course, do whatever you wish with the royalty payments once you receive them, but it will be up to you to split any payments with co-authors.

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    Can I arrange for someone else to receive my royalty payments?
    Yes you can, but only if you transfer the entire rights if your agreement with Palibrio to that other person. They will also maintain the copyright of the book in the U.S., but not the content of the book or your manuscript. If you want to make changes on the matter, please contact your publishing customer service associate.

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    What is the difference between a channel or retail sale and a Palibrio sale?
    If you purchased an ISBN and channel distribution, there are two different kinds of sales (if you have the distribution only through Palibrio's Bookstore, which is free, then retail sales do not apply to you.) When a book is sold through our Web site, it is considered a Palibrio sale. A retail, or channel sale, is when the book is sold through any retailer other than Palibrio (like amazon.com or Barnes and Noble). The selling price must be the same for both Palibrio and retail sales, but you will earn a different royalty amount depending on the type of sale.

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    Am I paid royalty on books I purchase?
    It depends on how you place the order. If you place an order for copies of your book through Live or e-mail with Palibrio and receive your author discount, then no, you will not receive a royalty payment for that order. This is because you receive the "royalty" as a discount up front. However, if you order directly through our Web site or a retailer and pay full price, then yes, you will receive a royalty payment for that purchase.

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    I've noticed my book being sold as "used" on Web sites but I have not received payment; why haven't I been paid?
    Often, retailers list books on their web sites and advertise that they have "new and used" copies of books. Retailers use this as a marketing tool to entice the consumer by frequently offering a small discount on the used version. This does not necessarily mean that they have an actual copy of your book on hand, which is most likely the case if you have not been paid a royalty for the book sale. If any books are sold to a retailer, you will earn the retail royalty amount which was agreed upon.

    If a retailer or third party actually is selling a used copy of the book, you would have already been paid in the past for the original sale.

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    Why is my book listed at a different price on certain sites?
    When you publish with Palibrio, you book is circulated to various channels through Ingram, our distributor. Retailers can list the selling price of your book at whatever price they wish, although most follow the suggested retail price which you select. However, some retailers may choose to list the book higher or lower than the suggested retail price, which is completely within their rights. Regardless of what a retailer sells your book for, you will always receive the retail royalty amount agreed to during the production of your book.

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    How do I know that I am being paid fairly for my book sales?
    You will be provided with a royalty statement showing book sales and royalty payment details each quarter. The statements are compiled and cross-examined by multiple parties to ensure an accurate record of royalty payments.

    Both our printer and distributor employ independent auditing firms to verify the book sales data. Additionally, a globally recognized accounting firm conducts yearly audits of our finances to ensure accuracy.

    But, if you feel there has been an error in your royalty payment report, you can contact your PSA to look in the matter more thoroughly.

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    How can I track my book sales?
    Book sales are reported on the quarterly statements distributed with royalty checks. Currently, we cannot track book sales mid-quarter.

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    Why does Palibrio need my Social Security number?
    We require your Social Security number to comply with the government’s tax regulations. Since you have the opportunity to earn additional income from book sales, the government requires that you pay taxes on the total earnings. The W-9 form allows you to provide a Taxpayer Identification Number, or TIN. If you are receiving royalties for your book as an individual, your TIN is your Social Security number. If the royalties for your book are going to a business, a business account must be created and W-9 should be supplied for the business that includes an employer identification number instead of your personal Social Security number.

    If you do not supply your taxpayer ID number, we are required to withhold taxes at the rate of 28 percent of total earnings.

    If you provide your TIN at a later date, we cannot return the withheld tax money because we do not retain it – it is passed on to the government by law. You can speak to a tax professional about how to report this at the end of the tax year in order to receive a tax return for any additional amount that you are due.

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    Will Palibrio send me a 1099 to report additional income from royalty payments?
    If you earned $10.00 or more in royalties within a fiscal year, we will automatically send you a 1099 statement. The 1099 reports your additional income in royalties during the first, second and third quarter of the current year and the fourth quarter of the previous year. It is the form you need to use to report taxes showing additional earning or contractual work. (If you are not a U.S. citizen, you will receive a 1042, very similar to the 1099.)

    If you have further questions regarding reporting taxes, please contact your tax professional.

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    Tax Information: What You Need to Know
    Palibrio will mail a Form1099-MISC to each U.S. author who was issued a payment for $10.00 or more in royalties (or incurred backup withholding greater than $0.00) during the calendar year. The income and withholding represent royalties from Quarter 4 of the previous year through Quarter 3 of the Form 1099-MISC year. The form will be mailed by Jan. 31, and should be delivered to the author in February. This form is required by the Internal Revenue Service (IRS) to report royalty income and withholding. If the author was not paid any monies during the calendar year, then he or she will not receive a Form 1099-MISC. The IRS requires Palibrio to have the form mailed/postmarked by Jan. 31, not delivered by Jan 31.

    International authors will receive a Form 1042-S instead of a Form 1099-MISC for the royalties earned and the amount withheld during the calendar year. The Form 1042-S will be mailed by March 15.

    The IRS requires Palibrio to have a Form W-9 or Form W-8BEN on file for each author who may earn royalties. The tax form must include the individual or company’s U.S. Taxpayer Identification Number (SSN, EIN, or ITIN). If the author refuses to provide the form or the digital equivalency, Palibrio will begin withholding taxes at the rate of 28% for U.S. citizens (or resident aliens) or 30% for nonresident aliens living outside the U.S. in accordance with U.S. tax law.

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    What tax information can Palibrio provide for me?
    Palibrio will provide a Form 1099-MISC or Form 1042-S stating royalties earned during a calendar year and the amount of withholding, to assist you in accurately reporting your royalty income. For further information please consult your professional tax consultant.

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    When does Palibrio mail the 1099-MISC or 1042-S?
    By law Palibrio is required to mail the previous year’s Form 1099-MISC by Jan. 31 of the current year. For non-U.S. persons, the previous year’s Form 1042-S will be mailed by March 15 of the current year.

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    Why didn’t I get a 1099-MISC this year?
    If you were issued payment for less than $10.00, and did not have backup withholding in the previous calendar year, you will not receive a 1099-MISC.

    If you were issued payment for $10.00 or more, or did have back-up withholding in the previous calendar year, please check that the address we have on file for you is accurate.

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    If I was paid under $10.00 in royalties, do I have to report it on my income tax?
    For any questions on reporting your income to the IRS, please consult your professional tax consultant.

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    Why is the income stated on my 1099-MISC or 1042-S form not equal to the sum of my royalty payments for the calendar year?
    The tax form reports the total royalties income earned over the calendar year and taxes withheld. “Royalties income earned” is the amount of your checks before withholding. Your payments equal the difference between your total income on the form and any taxes withheld.

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    When will Palibrio post Quarter 4 2013 royalties so I can complete my income tax return?
    Quarter 4 royalties will not be paid to you until the following calendar year; therefore, Quarter 4 royalties will be included on the Form 1099-MISC or 1042-S you receive the following year. Please refer to the Form 1099-MISC or 1042-S you may receive from Palibrio to learn the amount of money that has been reported as royalty income (and withholding) for tax filing purposes. Form 1099-MISC will be mailed by Jan. 31of the current year, and Form 1042-S will be mailed by March 15.

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    I submitted a Form W-9 or a Form W-8BEN in the past. Why am I being asked for it again?
    If you receive a request from Palibrio to submit your tax information, then we do not have your Form W-9 or W-8BEN in our system, and we need you to resubmit the appropriate form. We may not be able to assign a received tax form to your account due to an issue with matching your tax form with your author account, the tax form may include an incomplete address, or it could be another reason. Please note that the IRS may charge a penalty of $50 to those who are not able to provide us with correct TIN or SSN. This penalty applies only to US citizens.

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    I opted out of submitting my tax information. Why does Palibrio continue to request my tax information?
    The IRS requires that we have a complete tax Form W-9 or W-8BEN on file even if an author has opted-out of submitting tax information. We are required to request the tax form annually. In addition, the IRS may charge a penalty of $50 to those who are not able to provide us with correct TIN or SSN. This penalty applies only to US citizens.

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    If my company should receive the royalties instead of me, as the author, what do I need to do?
    First, an account for your company must be created in our system. To have an account created for the company, speak to customer support about a reassignment of rights. Second, a Form W-9 needs to be filled out for the company using the company EIN for the tax ID. Third, the company’s W-9 must be submitted either online through the company’s Palibrio account, or by mail (be sure to reference the company’s Palibrio account number).

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    My company’s W-9 was accidentally added to my individual account (or vice versa). How can I correct this?
    If your company’s W-9 was added to your individual account, please correct by submitting your individual W-9 and referencing your individual Palibrio account. Also, make sure that your company’s W-9 is connected to your company’s account. If your individual W-9 was added to your company’s account, please correct by submitting your company W-9 and referencing your company Palibrio account.

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    I am an international author, what do I need to do regarding the tax forms and ID numbers?
    You will need to submit a Form W-8BEN to Palibrio. When filling out the form, please remember to include your IRS issued U.S. taxpayer identification number (ITIN for individuals, EIN for companies), your author account number, your country of citizenship, and claim to a lower tax treaty rate (if applicable). Even if you don’t have a U.S. taxpayer identification number yet, you should still submit an initial Form W-8BEN to establish that you are not a U.S. person. Submit the Form W-8BEN once you have a U.S. taxpayer identification number in order to claim a reduced rate or exemption from withholding if your country has an income tax treaty with the United States.

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    How do I know if my country has a tax treaty rate with the United States that allows me to claim a lower rate of withholding?
    If applicable, you may claim a reduced rate of withholding as a resident of a foreign country with which the United States has an income tax treaty. See the Tax Treaty Tables within Internal Revenue Service (IRS) Publication 515 (see the helpful links below), “Withholding of Tax on Nonresident Aliens and Foreign Entities”, under “Copyrights” for your country’s tax treaty rate. Submit Form W-8BEN when requested by Palibrio whether or not you are claiming a reduced rate of withholding.

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    What if I don’t have an ITIN?
    If you do not have a Social Security Number (SSN) and are not eligible to get one, you must obtain an Individual Taxpayer Identification Number (ITIN) to claim your country’s reduced tax treaty rate (if applicable). To apply for an ITIN, file Form W-7, “Application for IRS Individual Taxpayer Identification Number” (see helpful links below) with the IRS. It usually takes 4-6 weeks to receive an ITIN from the IRS.

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    What if I don’t have an EIN?
    Companies may apply for a U.S. Employer Identification Number (EIN) by filing a Form SS-4 with the IRS.

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    How do I file Form W-7 with the IRS (to obtain an ITIN)?
    The W-7 tax form needs to be submitted by you, the author, to the IRS directly. This form is not processed or submitted by Palibrio.Palibrio can supply you with a support letter that will need to be submitted with Form W-7. Once this process is completed, the IRS will supply you with an ITIN. The ITIN will need to be included on the W-8BEN form that can be completed online through your secure author account or sent to Palibrio directly. If you require a W-7 support letter, please make the request with customer support and be sure to include your author account number, legal name, and mailing address.

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    What is a 1099-MISC form?
    Form 1099-MISC is used to report royalty income and backup withholding. The form is for each person who was issued payment for $10.00 or more in royalties during the calendar year or anyone who had backup withholding regardless of the $10.00 minimum.

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    Who will receive a 1099-MISC form?
    Authors who have been issued payment of $10.00 or more in royalties, or who have had backup withholding during the calendar year, will receive a 1099-MISC form. Form 1099-MISC applies to U.S. residents and U.S. resident aliens ONLY and is not sent to nonresident aliens or foreign persons. Nonresident aliens and foreign persons receive Form 1042-S.

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    What if there is an error on the 1099-MISC form? Is it too late to make changes?
    1099-MISC forms are not due to be filed with the IRS until March 31, so we still have time to make changes if necessary. Even after that, we can still file corrected forms with the IRS, so do not panic if something might be wrong.

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    The amount on my 1099-MISC form doesn’t match my checks; what is wrong?
    The amount of royalties reported on the 1099 is the gross amount of royalties paid before any backup withholding. The royalty amount should match the amount of royalties on your statements from Q4 of the previous year to Q3 of the 1099 year, plus any iPad or offset distribution royalties wherever applicable. Subtracting the withholding (box 4) from the royalty income (box 2) should equal the total monies paid to you during the 1099 year. If after careful analysis, you still believe there is an error, please contact Palibrio customer support.

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    One of my checks was not received during the tax year. May I request a corrected 1099-MISC?
    If the check was sent to the address on-file during the tax year, the 1099-MISC must include the income (and withholding if applicable) associated with the payment. If the check has still not been received, please contact customer support and request a re-cut.

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    Why isn’t there a “Recipient’s Identification Number” on my 1099-MISC form?
    The “Recipient’s Identification Number” is the box that should include your U.S. Taxpayer Identification Number (TIN). U.S. persons should submit a Form W-9 to Palibrio to report their Social Security Number (or EIN for a business). If we receive the update before the IRS filing deadline, March 31, we can guarantee that the updated form with the new identification number will be submitted to the IRS. We encourage online submission of the Form W-9 through your secure author account.
    Please note: authors may incur a penalty from the IRS for failing to report their TIN or for providing an invalid TIN.

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    The “Recipient’s Identification Number” on my 1099-MISC form is incorrect; what do I do?
    Submit a Form W-9 to provide Palibrio with your corrected Social Security Number (or EIN for a business). If we receive the update before the IRS filing deadline, March 31, we can guarantee that the updated form with the new identification number will be submitted to the IRS. We encourage online submission of the Form W-9 through your secure author account.

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    The “Recipient’s name” on my 1099-MISC form is incorrect; what do I do?
    The recipient name on your Form 1099-MISC is the person or entity who earned royalties income during the tax year. In most cases, the name must remain unchanged. However, if you were the recipient of the royalty income during the year and there is a spelling error with the last name, then we may be able to issue a correction before filing with the IRS on March 31. To request a 1099-MISC name correction, contact Palibrio customer support.

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    The “Recipient address” on my 1099-MISC form is incorrect; what do I do?
    The IRS does not match addresses. If you have received the form, then there is no need to request a new form with an updated address. If you would like to update your address for future mailings, please contact Palibrio customer support.

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    I cannot locate my 1099-MISC form; how can I request a copy?
    Please contact Palibrio customer support and request a copy of your 1099-MISC form. Be sure to indicate the tax year. The copy can be e-mailed with the Taxpayer Identification Number masked, or sent by the post if necessary.

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    IRS Tax Form for Non-US Citizens
    To comply with U.S. tax withholding and reporting requirements, we require a valid IRS Form from our authors. Where there is no IRS Form received by our offices identifying your Taxpayer Identification Number or Social Security Number, we are required to withhold 30% from royalties of non-U.S. residents and remit this to the U.S. tax authorities. Further, the IRS may charge you a penalty of $50 for not providing us with your correct TIN or SSN.

    To ensure we are not forced to withhold any of your royalties due to U.S. tax laws, please take a few moments to complete the following IRS Form:

    W-8BEN Form

    Please click here for instructions on how to complete the W-8BEN Form.
    Once you have completed the relevant form simply send it to the following address:
    Royalty Department
    Palibrio Publishing
    1663 Liberty Drive
    Bloomington, IN 47403
    United States

    Please ensure that all sections, including Taxpayer Identification Number and Signature, are completed prior to submitting the forms.

    Forms must be submitted no later than December 5 of each calendar year.

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    IRS Tax Form for US Citizens
    To comply with U.S. tax withholding and reporting requirements, we require a valid IRS Form from our authors. Where there is no IRS Form received by our offices identifying your Taxpayer Identification Number or Social Security Number, we are required to withhold 28% from royalties of U.S. residents and remit this to the U.S. tax authorities. Further, the IRS may charge you a penalty of $50 for not providing us with your correct TIN or SSN.

    To ensure we are not forced to withhold any of your royalties due to U.S. tax laws, please take a few moments to complete the following IRS Form:

    W-9 Form

    Once you have completed the relevant form simply send it to the following address:
    Royalty Department
    Palibrio Publishing
    1663 Liberty Drive
    Bloomington, IN 47403
    United States

    Please ensure that all sections, including Taxpayer Identification Number and Signature, are completed prior to submitting the forms.

    Forms must be submitted no later than December 5 of each calendar year.

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    Helpful Links

    Where can I find more information about my tax forms?
    Check out these links:


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  • Start publishing your book today!

    Call us at 1-877-407-5847 for a free consultation or download our Publishing Services Guide without any commitments.

    Have other questions about publishing? Send us an email at info@palibrio.com