"Some IRS agents won't have to worry about getting in trouble for watching porn at work, because part of their job duties will literally involve reviewing content on OnlyFans and other online creators. The issue, according to a report by Andrew Duehren at The New York Times, is the interpretation of a restriction on the no tax on tips deduction passed as part of the One Big Beautiful Bill Act that says that tips earned for prostitution or pornographic activity are not eligible."
"Whether or not the I.R.S. tries to come up with its own definition of pornographic activity, enforcing the exclusion would most likely still involve auditing taxpayers who report tips from sources like OnlyFans. An I.R.S. agent would have to view a taxpayer's content, decide if it was pornographic and then deny the deduction for tips, which is capped at $25,000."
"There are almost five million creator accounts on OnlyFans, reported the Times, but it's not clear how many of them are Americans and subject to U.S. tax laws, and not all of them are posting pornographic or sexual content. It's also unclear, wrote Duehren, whether strippers could claim the tips deduction, because [t]here is plenty of activity that an accountant or tax lawyer could argue is merely titillating."
The One Big Beautiful Bill Act excludes tips earned for prostitution or pornographic activity from a no-tax-on-tips deduction. The legislation provides little guidance defining pornographic activity. The IRS has not issued clarifying statements. Enforcement could require IRS examiners or tax judges to view creators' content to determine eligibility. There are almost five million OnlyFans creator accounts, though the number subject to U.S. tax is unclear and many creators do not post sexual content. The scope of excluded activity is ambiguous, raising questions about whether performers like strippers qualify. Determinations may be subjective, relying on individual examiners' judgments.
Read at www.mediaite.com
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