A publisher is preparing information returns to report the royalties paid to authors (nonemployees) during the prior calendar year. The proper information return to be completed is

Question

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Royalties paid to nonemployee authors must be reported on Form 1099-MISC. Form W-2 is for reporting wages paid to employees, Form W-3 is a summary transmittal form for Forms W-2, Form 1099-DIV is for reporting dividend payments, and none of these forms are appropriate for reporting royalties paid to nonemployees.

A Publisher Is Preparing Information Returns to Report the Royalties