Royalties and Book Pricing

How is the price of my book determined? 
How much royalty do I earn from each book sold? 
How does CrossBooks calculate royalty payments?
What's the difference between a Web sale and Channel Sale?
When is the price of my book determined? 
Can I purchase copies of my book at a discounted price?
What is the volume discount schedule for author purchased books?
Am I paid royalties on books I purchase?
How am I paid for my book sales? 
When am I paid? What's the payment schedule (quarterly schedule)?
When is my EFT information updated? 
How can I track my royalties and book sales? 
Can I split the payment with another co-author?
Can I arrange for someone else to receive my royalty payments? 
I've noticed my book being sold as "used" on websites, but I have not received payment; why haven't I been paid? 
Why is my book listed at a different price on certain sites? 
How do I know that I am being paid fairly for my book sales?
How often are "Your Monthly Sales Reports" updated in My Account? 
Why does CrossBooks need my Social Security number? 

General Tax Information

What tax information can CrossBooks provide for me?
When does CrossBooks mail the 1099-MISC or 1042-S?
Why didn’t I get a 1099-MISC this year?
If I was paid under $10.00 in royalties, do I have to report it on my income tax?
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?
When will CrossBooks post Quarter 4 royalties so I can complete my income tax return?

Tax Form Submisison

I submitted a Form W-9 or a Form W-8BEN in the past. Why am I being asked for it again?
I opted-out of submitting my tax information. Why does CrossBooks continue to request my tax information?
If my company should receive the royalties instead of me, as the author, what do I need to do?
My company’s W-9 was accidentally added to my individual account (or vice versa). How can I correct this?

International Authors

I am an international author, what do I need to do regarding the tax forms and ID numbers?
How do I know if my country has a tax treaty with the United States that allows me to claim a lower rate of withholding?
What if I don’t have an ITIN?
What if I don’t have an EIN?
How do I file Form W-7 with the IRS (to obtain an ITIN)? 

1099-MISC

What is a 1099-MISC form?
Who will receive a 1099-MISC form? 
What if there is an error on the 1099-MISC form? Is it too late to make changes?
The amount on my 1099-MISC form doesn’t match my checks; what is wrong?
One of my checks was not received during the tax year. May I request a corrected 1099-MISC?
Why isn’t there a “Recipient’s Identification Number” on my 1099-MISC form?
The “Recipient’s Identification Number” on my 1099-MISC form is incorrect; what do I do?
The “Recipient’s name” on my 1099-MISC form is incorrect; what do I do?
The “Recipient address” on my 1099-MISC form is incorrect; what do I do?
I cannot locate my 1099-MISC form; how can I request a copy?
Where can I find more information about my tax forms? 

 

How is the price of my book determined?

CrossBooks determines the right price for your book based on genre and page count. This allows us to maximize both the number of books sold and the highest profitability for you. The book price covers the print cost of your book, determined by a fixed cost for the cover and page count, plus the distribution cost and royalty amount. With years of experience in both traditional and self-publishing book sales, we price books to compete with any other traditional trade-quality books on the market, while our authors earn the high royalty payment that they deserve.

For more information about the price of E-books, click here.

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How much royalty do I earn from each book sold?

You will receive 50 percent of the payments received from the sales of your e-book, less any distribution and technology fees, taxes and returns. Royalties will not be paid on copies provided free of charge or sold to the author. For more information about E-book royalties click here.

We will help guide you through the book pricing process. Please feel free to email us with any questions.

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How does CrossBooks calculate royalty payments?

Royalties are based on the payments we actually receive from the sale of printed or electronic (e-book) copies of your book, minus 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. Retail discounts range between 36 and 55 percent.

Here's an example of a common sales transaction:
The cover price (list price) for your book is $17.95. Your royalty rate is 50 percent. A retailer places an order for your book through Ingram Book Company, a wholesaler. Ingram, in turn, purchases your book from CrossBooks at a 55 percent discount (our standard discount to wholesalers). Ingram then resells the book to the retailer. Your royalty on this sale of your soft cover book will be calculated as follows:

Retail Sale Example:
$17.95 (SRP "Suggested Retail Price")
- $9.87 (55% Retail Discount)
= $8.08 (Net Retail Discount) 
-  $4.97 (COGS "Cost of Goods Sold")  
= $3.11 (Net “Cost of Goods Sold”)
x  50% (Royalty Rate) 
=  $1.56 (Royalty Earned)

Web Sale Example:
$17.95 (SRP "Suggested Retail Price")
-  $4.97 (COGS "Cost of Goods Sold") 
= $12.98 (Net COGS)
x  50% (Royalty Rate) 
= $6.49 (Royalty Earned)

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

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What's the difference between a Web sale and Channel Sale?

Web sales are books sold directly through CrossBooks, either through our website or through one of our representatives to an individual. Channel sales occur when your book is sold through another retail channel, such as Amazon.com, Barnes and Noble, or when we sell directly to the retailer.

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When will I know the price of my book?

When you submit your manuscript to us we are able to determine how many pages your book will have, the genre and the cover cost, all things we need to know to set the price of your book. When we send you the electronic proof of your book we will include an estimated price for your review. The final price will be set at the end of the production process.

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Can I purchase copies of my book at a discounted price?

Yes, you can contact us directly to receive a discounted author price for books. Plus, if you order a larger quantity books, you'll receive a volume discount on top of your author discount.

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What is the volume discount schedule for author purchased books?

As a CrossBooks author, you are able to purchase copies of your book for a discounted price as mentioned in the previous FAQ. You'll also receive a larger discount as you order a greater number of copies. The price of the cost per book depends on the book format and page count.

Paperback Discounts:

Book Quantity

Discount *

1-24

30%

25-49

35%

50-99

40%

100-249

45%

250-499

50%

500-999

55%

1000-1999

60%

2000+

Call for a Quote

 

Hardcover and Color Book Discounts:

Book Quantity

Discount *

1-24

20%

25-49

30%

50-99

35%

100-249

40%

250-499

45%

500+

50%

*Orders must be for a single title, same print format and ship to a single address; we cannot accommodate mix and match orders. All volume discount orders must be prepaid, and shipping charges are not included. Author purchases do not generate royalties and are non-returnable. These purchases do not include author event discount purchases.

You can see how these volume discounts are extremely profitable if you are in a situation where you expect to sell a large number of books. Let's look at a real-life example:

Imagine that you are speaking at an event where you hope to sell 100 copies of your book which has a suggested retail price of $17.95. With your volume discount, you purchase 100 copies of your books at $9.87 for a total of $987.00:

  • Quantity: 100
  • Purchase Cost per Book: $9.87
  • Subtotal: $987.00
  • Shipping (approximate): $50.00
  • Total Investment: $1,037.00

You are free to sell your book for whatever price you choose at the event. So, imagine that you decide sell them for "special discounted event price" of only $15.00 (instead of the regular price of $17.95). Let's assume that you sell all 100 books:

  • Quantity Sold: 100
  • Sales Price per Book: $15.00
  • Gross Total: $1,500.00
  • Total Cost for Books: $1,037.00
  • Total Revenue: $463.00 

Even if you don't sell all 100 books, you'd only have to sell 69 copies to recoup your investment in the book order.

As you can see, CrossBooks volume author discounts present wonderful opportunities for our authors to compete in the marketplace.

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Am I paid royalties on books I purchase?

It depends on how you place the order. If you place an order through a CrossBooks representative and receive your author discount, then no, you will not receive a royalty payment, since you received the royalty discount up front. If you order directly through our website, then yes, you will receive a royalty payment because you will pay full price upon purchase.

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How am I paid for my book sales?

We pay the royalties for your book sales by check on a quarterly basis. When royalty earnings for your book reach $75.00 or more, we pay out your royalties. We will continue to hold your royalties until the balance due is $75.00 or higher. 

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When am I paid? What's the payment schedule (quarterly schedule)?

  • 1st Quarter - Jan. 1 to March 31: Checks are mailed in late May
  • 2nd Quarter - April 1 to June 30: Checks are mailed in late August
  • 3rd Quarter - July 1 to Sept. 30: Checks are mailed in late November
  • 4th Quarter - Oct. 1 to Dec. 31: Checks are mailed in late February

For each quarter, you are paid for the books sold and shipped within 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 2nd quarter, not the 1st, since the book didn't ship until the 2nd quarter.

You will only be paid once for the original book sale. For instance, if a book is resold in secondhand stores, you will not earn a royalty on the purchase, since we have no way of tracking these sales. Also, you earn a 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.

Please note: It requires approximately two months after the quarter closes until the royalty payments are sent to you. 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 the information to you.

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When is my EFT information updated?

We update new or modified EFT information on January 31, April 30, July 31 and October 31. To ensure your royalty funds are transferred to your preferred account, please make sure your account information is accurate prior to these dates. Changes made after these dates will be reflected on the following pay cycle.

Please note: You must reference a U.S.-based bank routing in order to take advantage of EFT.

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How can I track my royalties and book sales?

Book sales are reported on the statements distributed with royalty checks each quarter. Sales information is complied after the close of each quarter, and we are not privy to mid-quarter details of channel sales.

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Can I split the payment with another co-author?

No, we currently do not offer the option of splitting the royalty payment between individuals due to tax restrictions. You can, of course, do whatever you wish with the royalty payments once you receive them, but such payment deals with co-authors are entirely your responsibility.

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Can I arrange for someone else to receive my royalty payments?

Yes, you can, but only if you transfer the rights of your agreement with CrossBooks to that person entirely. They will also hold the copyright for the book, but not the content of the book or your manuscript. If you would like to arrange this, please contact our customer support team.

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I've noticed my book being sold as "used" on websites, but I have not received payment; why haven't I been paid?

Often, retailers list books on their websites 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 used versions. 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 that was previously agreed upon.

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

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Why is my book listed at a different price on certain sites?

When you purchase a publishing package, your book is circulated to various retail channels through Ingram and Spring Arbor, our distributors. 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. 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.

If you feel there has been an error in your royalty payment report, you can always contact our customer support team.

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How often are "Your Monthly Sales Reports" updated in My Account?

This information is updated monthly, with approximately a one and a half to two month lag before you will see it in your account. Simply use the dropdown menu to see what months are available, and click on the monthly report you'd like to view.

Please note: while these sales reflect web and retail, they are not final, approved numbers. The finalized numbers are in "Your Royalty Statement," updated quarterly. Although these reports usually reflect the same numbers, it's possible that they may change after getting official numbers from our vendors.

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Why does CrossBooks 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 supply us with your taxpayer ID 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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General Tax Information

CrossBooks will mail a Form1099-MISC to each U.S. author who earned more than $10.00 in royalties (or incurred 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 CrossBooks 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 CrossBooks 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, CrossBooks 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 CrossBooks provide for me?

CrossBooks 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 CrossBooks mail the 1099-MISC or 1042-S?

By law CrossBooks 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 paid less than $10.00, and did not have withholding in the previous calendar year, you will not receive a 1099-MISC.

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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 CrossBooks post Quarter 4 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 CrossBooks 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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Tax Form Submission

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 CrossBooks 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.

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I opted-out of submitting my tax information. Why does CrossBooks 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.

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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 CrossBooks account, or by mail (be sure to reference the company’s CrossBooks 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 CrossBooks 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 CrossBooks account.  

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International Authors

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 CrossBooks. 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 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 CrossBooks 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 CrossBooks. CrossBooks 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 CrossBooks 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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1099-MISC

  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 earned at least $10 in royalties during the past calendar year or anyone paid who had any amount of backup withholding regardless of the $10 minimum.

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Who will receive a 1099-MISC form?

Authors who have been paid at least $10 in royalties or who have had any backup withholding during the past 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 CrossBooks 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 CrossBooks 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 CrossBooks 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 CrossBooks 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 CrossBooks customer support.

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I cannot locate my 1099-MISC form; how can I request a copy?

Please contact CrossBooks 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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Where can I find more information about my tax forms?

Check out these helpful links:


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