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IRS May Review OnlyFans Content to Enforce Tip Tax Carve-Out

With no formal definition of "pornographic activity," determinations fall to individual examiners.

Overview

  • Recent reports say IRS agents would likely view creators’ posts on OnlyFans and similar platforms to decide whether reported tips qualify for the deduction.
  • The One Big Beautiful Bill preserved a tip write‑off but excludes tips linked to prostitution or what the statute calls "pornographic activity."
  • Treasury and the IRS have not issued guidance defining that term, making eligibility a subjective call that could end up before Tax Court.
  • The provision allows workers to deduct up to $25,000 in qualified tips each year from 2025 through 2028.
  • OnlyFans hosts millions of creator accounts and not all are sexual, complicating enforcement of the exclusion on a clear-cut basis.