OnlyFans Puts IRS in Awkward Spotlight Over Trump Tax Perk: Agents Decide Which Kinky Tips Stay Untouched​

In a twist of bureaucratic irony that few could have predicted, the Internal Revenue Service (IRS) may soon require its agents to trade their spreadsheets for subscription-based adult content sites.

Following the passage of President Donald Trump's latest economic legislation, tax examiners could find themselves in the uncomfortable position of viewing OnlyFans accounts to determine whether a creator's output qualifies as tax-exempt digital content or taxable 'pornographic activity.' It's a weird new duty that shows just how messy things can get when sweeping political promises meet the strange reality of the modern gig economy.

A Loophole In The 'Beautiful Bill'

The headache began with the One Big Beautiful Bill Act that President Trump signed into law back in July. The big selling point was the 'no tax on tips' rule, meant to help service workers keep more of their cash. To clarify, the government listed nearly 70 jobs that make the cut, covering everything from traditional service roles to modern gig work.

This list includes 'dancers' and 'digital content creators'—categories that ostensibly cover the millions of individuals monetising their content on platforms like OnlyFans. However, the legislation includes a significant caveat: any income derived from 'pornographic activity' is strictly excluded from the tax break. This exclusion has created a massive grey area, or 'jiggle room,' regarding where legitimate digital creation ends and pornography begins. Without clear definitions, the IRS is left to police the boundary.

From Yoga Mats To Bare Feet

OnlyFans is the main platform in the crosshairs, hosting around 4.6 million creators worldwide. While the site is synonymous with adult entertainment, it hosts a significant volume of non-sexual content. This diversity complicates any blanket ruling by the tax authorities. A creator might offer exclusive cooking tutorials, fitness instruction, or personal vlogs, all of which would theoretically qualify for the tip exemption under the 'digital content creator' label.

Katherine Studley, an accountant who represents numerous OnlyFans creators, emphasised this difficulty. 'Where's the line? Just because you're on OnlyFans, that doesn't necessarily mean it's pornographic,' she stated. 'You could have a cooking channel or a yoga channel.'

The distinction is rarely black and white; some accounts blend lifestyle content with 'spicy' imagery, while others cater to specific fetishes that may not involve explicit sexual acts, such as the lucrative market for photographs of feet.

The Impossible Definition Of Pornography

The core of the problem lies in the lack of a concrete federal standard. The US government has struggled historically to define pornography for tax and regulatory purposes.

Legally, obscenity is often determined by the 'Miller Test', a standard established by the Supreme Court in 1973, which relies on 'contemporary community standards'. However, applying a subjective community standard to a decentralised digital platform accessible nationwide presents a logistical nightmare for federal auditors.

This definitional vacuum creates a significant hurdle for the Trump administration. They cannot simply disqualify all OnlyFans creators from the tax break without unfairly penalising those producing non-adult content. Consequently, the task of filtering eligible taxpayers from ineligible ones falls to individual judgment rather than objective metrics.

An Awkward Audit For Agents

In practice, this means IRS agents will likely have to conduct manual audits of specific accounts. To verify a taxpayer's claim, an examiner may need to log in, subscribe, and review the content directly—no matter how bizarre or explicit it may be. Experts warn that this places an absurd burden on civil servants who are trained in finance, not media censorship.

Thomas Gorczynski, a tax preparer and educator, noted that the decision will effectively come down to personal opinion. 'Ultimately, it would be the subjective determination of an IRS examiner or a tax-court judge,' he explained.

The subjectivity of these audits could lead to inconsistent enforcement. 'Sometimes you look at something, and it's clearly pornography, but sometimes you look at something and you think, "Eh it's subjective. Somebody might be really into it",' Gorczynski added.

Financial Thresholds And Exemptions

For those who do manage to survive the content audit, the financial perks only go so far. The new rules cap the tax deduction for tips at $25,000 (£18,750), and high earners are shut out completely. If a single person makes over $150,000 (£112,500), or a couple brings in more than $300,000 (£225,000) combined, do not qualify.

This means the policy primarily benefits low-to-middle income creators. While this keeps the Treasury from losing too much revenue, it effectively means the top tier of OnlyFans creators—some of whom pull in upwards of $1 million (£750,000) a year—won't see a penny of relief anyway, regardless of what they post.