tag:blogger.com,1999:blog-6431840927280316473.post5479077263782299169..comments2023-05-19T05:38:04.336-06:00Comments on <center>Shameless Promoter - Book Marketing Coach</center>: UPDATED: September 2015 - Amazon's KDP, Smashwords, Withholding Tax, International Authors, ITIN and EINCheryl Tardifhttp://www.blogger.com/profile/15160526951596806898noreply@blogger.comBlogger32125tag:blogger.com,1999:blog-6431840927280316473.post-75826002994248835762018-02-14T18:16:16.944-07:002018-02-14T18:16:16.944-07:00As usual, laws change. It is now recommended that ...As usual, laws change. It is now recommended that authors who wish to self-publish apply for an ITIN. The IRS was swamped with EIN requests, and they've made it more difficult to obtain the EIN, which is meant more for a publishing business where you publish other authors and many of them. If you self-publish and maybe publish a few friends, you might be lucky enough to get an EIN, but there's no guarantee.<br /><br />So getting the ITIN, though it needs to be renewed, is your best option.<br /><br />Once you have your ITIN, you'll be able to open a publisher account on various publishing platforms (like kdp.Amazon.com). <br /><br />*I've been told that some publishing platforms now allow Canadian SINs. That would make things much easier for Canadians!!Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-36717767457000487412015-09-29T20:42:37.926-06:002015-09-29T20:42:37.926-06:00Hi Brian,
Thank you for dropping by my blog and f...Hi Brian,<br /><br />Thank you for dropping by my blog and for the comments. <br /><br /><b>It's now much easier to get an EIN by phone via the IRS's toll-free number, (800) 829-4933.</b><br /><br />However, if you decide to do the ITIN (both work), then download the instructions for form W-7: http://www.irs.gov/pub/irs-pdf/iw7.pdf <br /><br />I am guessing you'll leave that field blank. :-)Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-27236168555664664932015-09-29T19:28:37.058-06:002015-09-29T19:28:37.058-06:00For the W-7 Form, in section 6d, it asks you to en...For the W-7 Form, in section 6d, it asks you to enter the Date of entry into the United States. What date is this supposed to be? <br /><br />I currently reside in Canada and publish my books with Smashwords. I travel to the United States occasionally for leisure if that means anything.Brian Wonghttps://www.blogger.com/profile/05251760836625453632noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-77435360597106635782014-06-14T15:36:05.266-06:002014-06-14T15:36:05.266-06:00Troy, unless the form has changed from the 2010 fo...Troy, unless the form has changed from the 2010 form, there is no "Article Number."<br /><br />There is a "Reason you are submitting Form W-7..." line select h. Then add: "Exception 1(d) Book royalties.<br /><br />If that's not what you're talking about then I haven't got a clue.<br /><br />Again, this is why it's best to have an Acceptance Agent. They'll ensure all fields are filled out correctly. OR apply for an EIN. Multiple sources have told me it's a far easier process. Good luck.Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-48680617170917850222014-06-14T12:47:02.575-06:002014-06-14T12:47:02.575-06:00Thanks for the article on the ITIN W-7 IRS form, o...Thanks for the article on the ITIN W-7 IRS form, one question though. I’ve looked everywhere but nobody seems to actually say what the Article Number for Canadian writers is? Can you tell me what it is specifically? I’m having trouble knowing which is which on the table. Much appreciated.<br /><br />Thank you, <br /><br />Troy RoacheTroy Roachehttps://www.blogger.com/profile/16087162163972060741noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-49092001499030107552012-11-13T12:34:05.575-07:002012-11-13T12:34:05.575-07:00JTR, you're correct. Either an ITIN or EIN is ...JTR, you're correct. Either an ITIN or EIN is acceptable. You're the first person I've heard from who has said it's as easy as a phone call to get an EIN. :-) If so, that's awesome for anyone new authors looking for a way to get out of the withholding tax.Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-35275822056316910032012-11-13T12:29:34.602-07:002012-11-13T12:29:34.602-07:00Submitting via an Acceptance Agent will ensure you...Submitting via an Acceptance Agent will ensure you haven't incorrectly filled out the form. It will also be processed much faster by the IRS.<br /><br />Your other option is to get an EIN. You'll have to google that to get instructions. I've heard this is a bit easier to do on one's own.<br /><br />I was able to get refunds on all withheld tax, but I can't guarantee this is still the case.<br /><br />~CherylCheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-26627623414509111712012-11-13T12:10:44.176-07:002012-11-13T12:10:44.176-07:00Hello,
Firstly, I found your article to be very h...Hello,<br /><br />Firstly, I found your article to be very helpful. Thank you. I'm new to self publishing and didn't realize how convoluted the tax issue is for Canadian authors.<br /><br />In regards to The Acceptance Agent issue, I have called around in my area of southern Ontario and these guys are expensive. I'm just a single dad publishing a children's book for the heck of it. Paying upwards of $700 just to send a form to the IRS doesn't make financial sense for me. I looked at the W-7 form and it is quite straight forward to complete. I did it in a few minutes. Thus, my question is: what is the actual benefit of using an Acceptance Agent? Is it simply the processing time? What draw back is there if I just submit the form myself with a copy of my ID? <br /><br />Also, I wanted to know if there is a chance of reclaiming any of the 30% withheld taxes AFTER the W-8BEN is received from Createspace? Has anyone tried?<br /><br />Thanks againDiary of a Creative Black Geekhttps://www.blogger.com/profile/07468398286560318726noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-59371320143856451282012-01-08T05:42:31.767-07:002012-01-08T05:42:31.767-07:00I applied and got over the phone from the IRS an E...I applied and got over the phone from the IRS an EIN number without having to supply any passport identification. If I understand it correctly an EIN or ITIN are both eqiually valid to qualify for tax exemption. Am I mistakenJoan Taylor-Rowanhttps://www.blogger.com/profile/02024848210572181941noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-9101903757786685442011-08-05T16:51:06.501-06:002011-08-05T16:51:06.501-06:00Hi I.A.M.,
I really appreciate your comments here...Hi I.A.M.,<br /><br />I really appreciate your comments here and I appreciate that you're relaying what the Acceptance Agent told you.<br /><br />My point is that Smashwords will withhold 30% of an author or publisher's income, as per Mark Coker's statement to me posted here, UNLESS an author/publisher has and ITIN or EIN or as they say the SSN, which is a new addition. Small publishers can get away with just the ITIN if they have it and are publishing their own works as well as others.<br /><br />I.A.M., if you have been receiving 100% of your income from Smashwords and Amazon, without providing an ITIN or EIN, I'd be interested to know that. Laws and requirements do change over time. If all Smashwords requires now is a Canadian SIN, that would be great!<br /><br />My advice to authors and publisher: always check with the retailers/distributors you want to deal with. Whatever THEY want is what you must supply.<br /><br />Createspace also required an ITIN.<br /><br />Remember: this is for non-US authors/publishers.Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-14652343854089845102011-08-05T14:55:23.172-06:002011-08-05T14:55:23.172-06:00Re-reading things makes me think something of poss...Re-reading things makes me think something of possible clarity. Mr. Coker specifies one of the possible things that are acceptable are the SSN of the person they deal with is fine. Under the tax treaty, the tax will be assessed by Canada Revenue Agency, and your Canadian ID is the Social Insurance Number which is our version of the American SSN. Thus, it'll be fine because they have the cross reference; thus you don't need an ITIN unless you began as an author. Plus you probably have an HST/GST account number, so that covers the import/exportation of things as well. Basically, if you're the *end point* of monies or the portion there of for intellectual property (i.e.: consultation services or the intellectual property of a book) then you need to cover your earning in the USA. As a publisher, you're not doing any of that, because you're splitting things up further to cover internal costs as well as authors and so on. Ergo: no need for the ITIN if *all* you're doing is being a publisher.I.A.M.https://www.blogger.com/profile/17127683776644028228noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-14947892019599655312011-08-05T14:48:20.675-06:002011-08-05T14:48:20.675-06:00The Acceptance Agent I dealt with in Vancouver was...The Acceptance Agent I dealt with in Vancouver was the one recommended by the list from the IRS. I made clear to the man I was only a publisher and *not* an author. We did not discuss anything to do with my business registration or anything else. If he wanted to make $640 from me for an ITIN application,l he could have. He says "you don't need one if you're the publisher", then who am I to tell him his business?<br /><br />I don't want to pick a fight with anyone here, I'm just passing on what he's telling me.I.A.M.https://www.blogger.com/profile/17127683776644028228noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-23094414354516702632011-08-03T18:35:26.143-06:002011-08-03T18:35:26.143-06:00Acceptance agents are supposed to verify your iden...Acceptance agents are supposed to verify your identity. This means they need picture ID. Again, I highly recommend you go through a professional acceptance agent and do this right the first time.<br /><br />Otherwise, you may find 30% of your income withheld. Saving $650 may seem like a great idea, but you can have that much withheld from one month's royalties.<br /><br />Authors and publishers must remember this is a business. You can write off these kinds of expenses (fees for agents). Doing it right the first time will save you a lot of headaches. :-)Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-33212924440538726912011-08-03T18:31:10.086-06:002011-08-03T18:31:10.086-06:00I.A.M., please read my comment above. I received c...I.A.M., please read my comment above. I received confirmation from Smashwords that they WILL withhold tax from international publishers if they have not filed for an ITIN/EIN. Authors who have turned publisher can use their existing ITIN.<br /><br />Any US company that a non-US resident author does business with can withhold tax, usually 30%. It is worth it to get the ITIN.Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-34552021601069393472011-08-03T18:19:51.566-06:002011-08-03T18:19:51.566-06:00Of additional clarification might be that one'...Of additional clarification might be that one's Canadian SIN is sufficient for identification.<br /><br />I've saved $650 and two hours of the guy's time by not requesting an ITIN. Granted, I'm a non-author operating a registered sole proprietorship, so perhaps that helps.I.A.M.https://www.blogger.com/profile/17127683776644028228noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-11534852767647626982011-08-03T18:17:14.713-06:002011-08-03T18:17:14.713-06:00Well, the guy who acts as a Certifying form guy in...Well, the guy who acts as a Certifying form guy in Vancouver says that the reason a publisher doesn't need an ITIN (and he didn't mention any other identifying number) is that the publisher isn't receiving 'royalties'. The publisher sends those on to the authors. Yes, there is 'income' for the publisher, but that is taken care of by the Canadian Revenue Agency, and the W-8BEN is the only thing required for someone who is only a publisher and not a self-publisher.I.A.M.https://www.blogger.com/profile/17127683776644028228noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-47456878862468911772011-07-28T21:41:10.312-06:002011-07-28T21:41:10.312-06:00I received confirmation that publishers DO need to...I received confirmation that publishers DO need to apply for an ITIN or EIN.<br /><br />According to Mark Coker, CEO of Smashwords: "We need a completed W8-BEN form that contains either an IRS-issued ITIN (individuals), EIN (companies) or SSN for folks to receive the tax <br />treaty benefit."Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-69044561155203274432011-07-28T17:40:18.027-06:002011-07-28T17:40:18.027-06:00Not sure I agree with your comment, I.A.M. The W7 ...Not sure I agree with your comment, I.A.M. The W7 form is to get the ITIN, which you need to submit to Smashwords, Amazon etc so they won't deduct withholding taxes. As far as I know these companies will withhold taxes even if you're a small publisher. It's an IRS thing.<br /><br />Something publishers should definitely check into. Though I'm now a publisher too, I had my ITINs in place BEFORE I went into publishing.<br /><br />I'll have an update on this ASAP.Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-39202961031711646252011-07-28T17:18:49.472-06:002011-07-28T17:18:49.472-06:00IMPORTANT NOTE: The information above applies to s...IMPORTANT NOTE: The information above applies to self-published authors. Those who are PUBLISHERS in this situation and are passing royalties on to authors can skip the W-7 form and head right to the W-8BEN step which doesn't involve an Acceptance Agent filing for you. As one of the latter group, I've just saved six weeks and about $650 dollars.<br /><br />I entirely agree about thew worth of an Acceptance Agent being involved for those authors in this situation, and whole-heartedly endorse the wonder chap at Bluecarp Tax Consulting at 1055 West Hastings Street in Vancouver. He's gem and both knowledgeable and incredibly nice.I.A.M.https://www.blogger.com/profile/17127683776644028228noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-88336435923657741512011-07-04T09:43:02.838-06:002011-07-04T09:43:02.838-06:00Thanks.
I have a copywriting biz now, so I was thi...Thanks.<br />I have a copywriting biz now, so I was thinking of using that name for the publishing. I do need to find a tax expert. <br />Thanks for the info.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-74728619502584463272011-06-28T17:04:05.011-06:002011-06-28T17:04:05.011-06:00As a published author earning an income, you shoul...As a published author earning an income, you should be filing income tax for a home-based business. Believe me, if you do it right, you won't pay taxes. At least not until you're earning thousands per month. And that takes a while and many books.<br /><br />You won't file as a separate company but there is a section for In-Home Office expenses. As an author, you'll have many deductions, including a percent of your home utilities paid for your work space/office. Talk to a tax consultant for more info, or join a writers' group. They can help you understand your deductions. I'll also see if I can find one who will write us a guest post.<br /><br />You will need to claim this income, so be sure to keep gas bills for writing related expenses, phone bills, supply receipts, postage receipts etc.Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-72955208300827960232011-06-28T16:22:15.948-06:002011-06-28T16:22:15.948-06:00Another question...
If I get my ISBN number under ...Another question...<br />If I get my ISBN number under a publishing company name. Am I in effect creating a company that will have tax implications? <br />Will I need to file a tax return for the 'publishing company'? <br />Sorry for so many questions, just want to get it right. <br />thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-87709880529163870052011-06-28T09:40:03.202-06:002011-06-28T09:40:03.202-06:00Hi Elena, I'm glad you stopped by.
No, don...Hi Elena, I'm glad you stopped by.<br /><br />No, don't buy your ISBN from Smashwords or any other ISBN provider. You don't need to. As a Canadian author, you're entitled to free ISBNs. Ones you'll own.<br /><br />To register your ISBN, you'll first want to come up with a publishing company name. This could be your name or something creative. <br /><br />Once you've figured out a publishing name, go to:<br /><a href="http://www.collectionscanada.gc.ca/ciss-ssci/041002-1000-e.html" rel="nofollow">CISS</a> and join. It's free too.<br /><br />Once you're set up with CISS, go to:<br /><a href="http://www.collectionscanada.gc.ca/ciss-ssci/app/index.php" rel="nofollow">ISBN page</a>. You'll first register for a block of numbers with your special publisher prefix. This may take a day or so. Afterwards, you go back to the above page, log in and assign an ISBN to each book you plan to publish.<br /><br />Keep in mind that you need a separate ISBN for an amazon Kindle ebook being sold using KDP, another # for the Smashwords edition and a 3rd # for a print edition.<br /><br />Good luck.<br />CherylCheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-89307840949706151942011-06-28T09:21:34.108-06:002011-06-28T09:21:34.108-06:00Thanks for pointing me to this blog. Great informa...Thanks for pointing me to this blog. Great information! <br />I'll be launching my book in July so I will definitely be coming back here for advice. <br />One question, Do you have to get your ISBN number through Smashwords before they'll give you the letter? I've heard that once you get the ISBN through them and you take your book off Smashwords, you can't use the number. Is this true? <br />I have so much to learn still.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6431840927280316473.post-86368761062478120882011-06-09T14:41:39.921-06:002011-06-09T14:41:39.921-06:00Hi dirtywhitecandy (lol),
Thanks for stopping by....Hi dirtywhitecandy (lol),<br /><br />Thanks for stopping by. Yes, IRS offices or embassies, I've been told, can notarize your passport. In Canada, an Acceptance Agent is also authorized to do this.<br /><br />The embassies don't charge but you usually have to make an appointment and there could be a long wait. Something to keep in mind.<br /><br />Thanks for letting me know how things work in London. Wait, is that London, Ontario, or London, UK? :-)Cheryl Tardifhttps://www.blogger.com/profile/15160526951596806898noreply@blogger.com