Today I went to my tax accountant to discuss my “royalties.” I waited until now because tax season is much too hectic to talk about 2026 issues to people in that profession. I have had a few unhappy incidents with the tax man and I go way out of my way to make sure that doesn’t happen again.
Now this is my new accountant. In fact, he’s the grandson of my old accountant. His grandfather is retiring soon so I’m sort of an inheritance. When I arrived, I saw a kid walking in the front door and after waiting in the waiting room for a few minutes that same kid turned out to be my accountant. But despite his youthful appearance he proved up to the job of assuaging my fears about ending up in an IRS gulag for high crimes and misdemeanors against the tax code. Specifically, I was worried that maybe there was some kind of monthly reporting and payment I needed to perform for both the state and federal systems. I remember when I was dealing with a state agency that required businesses to collect and pay sales tax monthly.
He explained to me that unless I was profiting to the tune of several thousand dollars a month, I wouldn’t need to send any money to the feds but even if I did, I’d be getting it back if I had enough “expenses” (like Amazon Ads and marketing fees) to cover the royalties I received.
At the mention of expenses, I barked a bitter laugh. I told him the idea that I was profiting from my sales was laughable in the extreme. Basically, a first book (barring some miraculous viral publicity) was a loss leader for the rest of the sequels. He agreed that his other author clients had told him about what it took to grow a book business but he also warned me that the feds only give you three years to turn a profit before they stop considering it a business and declare it a hobby for which expenses are not credited. Well, we’ll have to see about that.
So, we agreed I’d check back with him in June to see if I was any closer to needing to send some cash to the feds. And he didn’t want to take a fee for his services today but I insisted. The information I got had so eased my mind that I felt I would be robbing him of a well-earned reward if I didn’t give him fifty bucks. I mean people who go to therapy to ease their minds pay their psychiatrists many hundreds of dollars and get less peace of mind than I did today. I would have felt like a thief if I walked out for nothing.
And looking at my book’s Amazon page, I had two new very complimentary reviews. One was from a friend of mine. He disclosed our relationship but it was still a very good review. And another one was from someone who was an Iraq War vet who enjoyed the scenes in the desert. That kind of made my day. So today is a good day to be a writer.