Pricing & Royalty

Can I earn money when I self-publish my book with Archway Publishing?
Will I make money when my book is sold online through Archway Publishing?
Will I be paid a royalty even if I live outside the United States?
How is the price of my book determined?
What are the distribution costs in self-publishing?
How does Archway Publishing calculate royalty payments?
Can I receive a volume discount on a large book purchase?
When is the price of my book set?
Can I change the price of my book later?
What payment form will I receive my royalties in?
When am I paid royalties? When do quarters start and end?
How long does it take to receive payment?
Can my royalty check be split between a co-author and myself?
Can I arrange for someone else to receive my royalty payments?
What is the difference between a channel or retail sale and an Archway Publishing sale?
Am I paid royalty on books I purchase?
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 can I track my book sales?
How often are "Your Monthly Sales Reports" updated in My Account?
When is my EFT information updated?


General Tax Information

What tax information can Archway Publishing provide for me?
When does Archway Publishing 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 Archway Publishing 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 Archway Publishing 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?


Can I earn money when I self-publish my book with Archway Publishing?

Yes, you will have the opportunity to earn money from book sales when you self-publish a book with Archway Publishing. We do not license exclusive rights to publish your book from you, nor do we give you an advance against royalties like a traditional publisher. However you will earn royalties from each book sale; these royalties are taxable income for you. Please read other FAQs below to determine how book pricing and royalty calculations are determined.

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Will I make money when my book is sold online through Archway Publishing?

Yes. When your book is sold through Archway Publishing, another retailer, or a wholesaler you will receive a royalty for that sale.

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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. However, we are required to withhold 30 percent of your royalty earnings. This percentage will be withheld unless you apply for a foreign tax number by submitting a W-8BEN. With a foreign tax ID, we're no longer required to withhold taxes. Any money that was previously collected can be reclaimed with your taxes at the end of the year, but we cannot repay it. For more information, or to download a W-8BEN, visit www.irs.gov.

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How is the price of my book determined?

The price of your print book is determined by several factors including: your book's production cost, based on the cover cost and page count; distribution costs, such as order fulfillment and customer support; and your royalty percentage. Together, these are used to determine the Suggested Retail Price ("SRP") or list price for your book. For information on how e-book prices are determined, please see the the FAQs on that topic.

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What are the distribution costs in self-publishing with Archway?

The distribution costs are those costs involved in making your book available for purchase through the various wholesale and retail channels. These costs include maintaining your book in the Archway Publishing bookstore, keeping your book and author 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 Archway Publishing calculate royalty payments?

Royalties are based on the net 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. Since retail and wholesale customers purchase at a discount, the royalty amount you receive depends on what types of customer bought your book, the channel through which they purchased, and any discount they received.

Here are two examples of common sales transactions.

The cover price (list price) for your book is $17.95. Your Archway Publishing royalty rate is 50 percent.

Wholesale Example:

A retailer places an order for your book through Ingram Book Company, a wholesaler. Ingram, in turn, purchases your book from Archway Publishing at a discount. Your royalty on this sale is calculated as follows:

$17.95 (SRP "Suggested Retail Price")
- $9.87 (55% Wholesale Discount)
= $8.08 (Net after Wholesale Discount)
-  $4.97 (COGS "Cost of Goods Sold") 
= $3.11 (Net after COGS)
x  50% (Royalty Rate)
=  $1.56 (Royalty Earned from a retail sale)

Web Sale Example:

Another scenario occurs when a consumer comes to the Archway Publishing bookstore and purchases your book directly. Your royalty on this sale of the same book is calculated as follows:

$17.95 (SRP "Suggested Retail Price")
- $4.97 (COGS "Cost of Goods Sold")
= $12.98 (Net after COGS)
x  50% (Royalty Rate)
= $6.49 (Royalty Earned from a web sale)

Please be aware that the largest retailers, including Barnes & Noble and Amazon, place orders for print copies of Archway Publishing titles through Ingram, so those orders will appear as wholesale sales on your royalty statement.

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Can I receive a volume discount on a large book purchase?

Yes. As an Archway author, you are able to purchase copies of your book for a discount off the list price. You'll receive a larger discount as you order a greater number of copies. The discounts also vary depending on the book format.

 

Paperback
Discounts:

 

Book Quantity

Discount*

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+

Call for a Quote

 

Hardcover / 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, of the same print format and shipped to 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.

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When is the price of my book set?

The price of your book is set after the manuscript and cover are approved, because the final page count, cover and book size help determine the price.

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Can I change the price of my book later?

Archway Publishing will attempt to accommodate your request to change the price of your book, provided the new price is within the allowable range established by Archway.

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What payment form will I receive my royalties in?

Your royalties from book sales are paid to you by mailed check on a quarterly basis (four times a year). Royalties are paid when your royalty earnings reach $75.00 or more.

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

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

You are only paid for the books sold 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 did not ship until the second quarter. E-book purchases are recorded when the sale is made, not when the file is recorded.

Please note that you will only generate royalties from the original book sale. For instance, if a book is resold in any kind of second-hand store, you will not earn a royalty on that sale. Also, for retailers, you earn a royalty when the book is sold to a retailer who purchases your book for their store, not when a consumer actually purchases the book from the retailer.

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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. (See specifics in the FAQ above.)

The two-month time frame is necessary because we do not receive final sales reporting information until 30 days after the close of the quarter. We  then 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, because of tax restrictions we cannot offer a split royalty payment between individuals. Of course, when the payment comes to you, you choose to split the amount with another party. 

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

Yes, but only by transferring all rights of your agreement with Archway Publishing to that person. That person will also hold the copyright for the book. If you would like to arrange this, please contact your publishing consultant.

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What is the difference between a channel or retail sale and an Archway Publishing sale?

When a book is sold through the Archway Publishing bookstore, it is considered an Archway Publishing sale. A retail, or channel sale, occurs when the book is sold through any retailer other than Archway Publishing (like Amazon.com or BarnesandNoble.com).  The list price for your book must be the same for both Archway Publishing 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?

Royalty payments on books you purchase depend on how you place the order. If you place an order for copies of your book through an e-mail to Archway Publishing and receive your author discount, then no, you will not receive a royalty payment for that order. However, if you order directly through the Archway website or another retailer, 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 websites but I have not received payment; why haven't I been paid?

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

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

When you publish with Archway Publishing, your book is circulated to various retail channels through Ingram, our book distributor. Most retailers adhere to the suggested retail price. 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 price a retailer sells your book for, you will receive the retail royalty to which you are entitled. 

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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 your 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.

However, if you feel there has been an error in your royalty payment report, you can contact your publishing consultant to look into the matter more thoroughly.

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How can I track my book sales?

Book sales are recorded in the Sales and Royalties section of the Author Center. Please note that because it can take time for external retailers to report sales information to us, this page is not updated in real time. It may take up to 60 days after the close of the royalty quarter for sales information to be posted to the Author Center.

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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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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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General Tax Information

Archway Publishing 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 Archway Publishing 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 Archway Publishing 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, Archway Publishing 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 Archway Publishing provide for me?

Archway Publishing 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 Archway Publishing mail the 1099-MISC or 1042-S?

By law Archway Publishing 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 Archway Publishing 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 Archway Publishing 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 Archway Publishing 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 Archway Publishing 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 Archway Publishing account, or by mail (be sure to reference the company’s Archway Publishing 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 Archway Publishing 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 Archway Publishing 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 Archway Publishing. 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 Archway Publishing 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 Archway Publishing. Archway Publishing 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 Archway Publishing 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 Archway Publishing 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 Archway Publishing 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 Archway Publishing 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 Archway Publishing 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 Archway Publishing customer support.

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

Please contact Archway Publishing 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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