Members Parallex Posted March 18, 2006 Members Posted March 18, 2006 I was registering for ASCAP, and then put it on hold when I was filling out the W-9. I dont' have the band delcared as a business. But will filling out this information and filing it with my ASCAP info put me on the map of "possible people to audit now," for this purpose? Or moreso than I already am, because bandwise, we lay pretty low to the eyes of the IRS. I'm just wandering if this could trigger a "well this guy has registered for ASCAP to receive royalties for his music, let's see what he's got going on" ?
Members Beachbum Posted March 18, 2006 Members Posted March 18, 2006 My opinion? Of course the IRS would take note. Royalties are part of the 'Wages, tips, and other compensation' area on your tax return. You won't necessarily receive an audit, but you can minimize the chances by declaring some royalties income. (The best thing you can do is keep the IRS guys REALLY happy. If you declare some money as royalties they won't wonder why you didn't. The biggest threat that the IRS poses, in my opinion, is the time & money you have to spend to prove your innocence should you be audited. You've got to stop everything and spend time with these guys - no fun. They have no sense of humor.)
Members Parallex Posted March 18, 2006 Author Members Posted March 18, 2006 Yeah, and don't tell dead baby jokes during the audit either.
Members fuzzy4dice Posted March 20, 2006 Members Posted March 20, 2006 I'm an ASCAP member and I do recieve some small royalties that I claim, however, I am not registered as a "entertainer" anymore, but I still declare that stuff. The more "up and up" you are with the IRS, the better. You can't say, "My band and I lay low with the IRS." in one breath and then worry about an audit in the next. Are you claiming stuff or aren't you? I don't think being an ASCAP member will make you more likely to be audited unless you are recieving royalties.
Members Parallex Posted March 20, 2006 Author Members Posted March 20, 2006 Do you receive a W2 from ASCAP for taxes after a year of royalties are collected?
Members fuzzy4dice Posted March 20, 2006 Members Posted March 20, 2006 Originally posted by Parallex Do you receive a W2 from ASCAP for taxes after a year of royalties are collected? yes...if I don't get anything from them then I don't recieve anything. I think they just start you out with the W-2 for when you DO start collecting. I bet there are TONS of ASCAP members who have never recieved a check... And believe me, with the taxes I pay on it, it's barely worth it for me to recieve.
Members Parallex Posted March 20, 2006 Author Members Posted March 20, 2006 Yeah, I honestly don't expect to collect much, if any, royalties. We had a song end up on an MTV show ("Made") and we're not sure how that happened (we were never notified) but it opened our eyes that we need to be covered on all bases. And yes, if I do receive a W2, then of course I'd report it then, because that make it easy. Not that I'll have anything to even report. When you say "small royalties," exactly how small?
Members Tim Jones Posted March 23, 2006 Members Posted March 23, 2006 What's the going rate these days? 6-8 cents a song play. Something like that. TJ
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