In an unprecedented move, agents from the US Internal Revenue Service (IRS) will be required to view content on the platform OnlyFans. Their task is to determine whether creators qualify for a controversial new 'no tax on tips' law. This provision was included in former President Donald Trump's Big, Beautiful Bill, which passed into law on 4 July 2025.
The Subjective Challenge of Defining Pornography
The law, designed to incentivise tipped work, excludes pornographic creators and actors from its tax benefits. This has created a significant practical dilemma for tax authorities. Campaigners and accountants argue the wording is too vague, making it difficult to definitively classify what is and isn't pornography on a platform hosting diverse content.
"Where's the line?" asked Katherine Studley, an accountant for several OnlyFans creators, in comments to The New York Times. "Just because you're on OnlyFans, that doesn't necessarily mean it's pornographic. You could have a cooking channel or a yoga channel."
This ambiguity means each case may need individual assessment. Thomas Gorczynski, a tax preparer, noted the decision would ultimately rely on the "subjective determination of an IRS examiner or a Tax Court judge." He highlighted the inherent difficulty, stating, "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.'"
Political Pressure and Exempt Professions
The exemption for adult content creators was added after conservative and Christian groups lobbied Treasury Secretary Scott Bessent. They argued the government should not provide tax breaks to industries they view as predatory and destructive to families.
Meanwhile, numerous other professions are entitled to the tax exemption on their tips. The list includes:
- Bartenders and waiters
- Non-radio DJs and tattoo artists
- Maids, plumbers, and golf caddies
There have been ongoing calls to expand this list further to include clergy, chiropractors, and even Santa Claus performers.
Broader Implications and Industry Fear
The policy arrives as OnlyFans experiences massive growth, with $7.2 billion spent on the platform last year according to Forbes. Consumption is widespread, with data from Addiction Help indicating 67% of American men and 41% of women view pornography annually, including on sites like OnlyFans.
For some, the IRS's new role is a worrying sign of broader crackdowns. Financial planner Jessica Goedtel, who works with sex workers, expressed concern that this could be a step towards more severe restrictions, referencing the Project 2025 manifesto by The Heritage Foundation which advocates outlawing pornography. "This is the direction that the government is moving in," she warned. "The IRS could be used as a tool."
The situation leaves the IRS with a uniquely sensitive and legally complex enforcement role, balancing tax code implementation with judgements on adult content in the digital age.
