Irs Could Be Tuning Into Onlyfans: A New Twist In Tax Enforcement

IRS Faces Unconventional Task with New Tax Rule

The Internal Revenue Service (IRS) is stepping into uncharted waters with a new federal tax rule that could have them reviewing OnlyFans content. This peculiar turn of events stems from a recent amendment in a broader tax package, allowing eligible workers to deduct up to $25,000 in qualifying tips annually from 2025 through 2028.

The aim of this change, as reported by Newsweek, is to lighten the tax load for workers in tip-heavy jobs. While tips remain taxable, the deduction offers significant relief for those who qualify. But, as with any good plot twist, there’s a catch: not everything that glitters counts as a "tip,” and determining eligibility might require IRS agents to delve into some intriguing online content.

Defining Tips and Determining Eligibility

The Treasury Department’s guidance released this fall identifies nearly 70 occupations eligible for the deduction, including "digital content creators," "entertainers," and "performers." This broad definition could encompass OnlyFans creators, who often receive payments labeled as tips.

Yet, the law excludes tips from prostitution or "pornographic activity," sparking questions about how this will be enforced, especially on a platform known for its diverse content. Creators on OnlyFans range from adult entertainers to fitness gurus, and even chefs.

IRS Agents: Content Reviewers?

According to The New York Times, IRS examiners might need to watch creators’ content during audits to assess whether it falls into the non-qualifying category of pornographic material. This raises concerns about subjective judgment and the potential for inconsistent enforcement.

"Just because you’re on OnlyFans doesn’t mean it’s pornographic," said Katherine Studley, an accountant who advises multiple creators. "Some people use the platform for cooking, yoga, or other entirely non-sexual content."

The IRS has yet to define "pornographic activity" for tax purposes formally, leaving tax professionals worried that enforcement could hinge on individual interpretations or court judgments.

The Complex Landscape of OnlyFans

OnlyFans' massive scale compounds the challenge. Forbes reports that users spent $7.2 billion on the platform in 2024, with over 4.6 million creator accounts and hundreds of millions of user accounts worldwide.

Creators argue that enforcement could be impractical, as tips derive from a wide array of content. Tax preparer Thomas Gorczynski notes, "Sometimes it’s clearly pornography. Other times, it’s subjective," highlighting the murky waters the IRS must navigate.

As the IRS ventures into this new arena, the task at hand is as complex as it is unconventional, reflecting the ever-evolving landscape of digital content and taxation.