IRS employees are now expected to view adult content on OnlyFans to determine if it qualifies for a tax exemption under the “tip tax exemption” law, part of President Donald Trump’s Big Beautiful Act, which was enacted on July 4, 2025. This legislation aimed to encourage tipping by cutting taxes, but it explicitly states that content creators and actors in the adult industry, such as those on OnlyFans, aren’t eligible for these exemptions.
Some activists argue that the terminology in the law is too vague. An accountant highlighted this issue, noting that the distinction between adult content and other types of content isn’t always clear. Katherine Studley, who collaborates with various OnlyFans producers, pointed out that being on the platform doesn’t automatically mean the content is pornographic. “You can also create a cooking channel or a yoga channel,” she explained.
Legislators have historically found it challenging to define pornography, often requiring case-by-case assessments. When it comes to court, the First Amendment may defend such content, compelling lawmakers to actually view the material in question first.
Consequently, taxpayers who report tips from OnlyFans may have their content scrutinized by IRS personnel. Tax attorney Thomas Gorczynski remarked on the subjective nature of such determinations, stating, “Sometimes it’s quite obvious, but other times, it’s a matter of personal perspective.”
Various professions, including bartenders, waitstaff, and tattoo artists, already receive exemptions under this law. However, the administration faces challenges in adapting the policy, with calls for including additional professions, like clergy and even Santa Claus impersonators.
This decision to exclude adult content creators resulted from pressure from Conservative and Christian groups who wrote to Treasury Secretary Scott Bessent, arguing against tax breaks for industries perceived to exploit individuals and harm families.
As OnlyFans continues to grow in popularity, statistics show substantial engagement: Forbes reported $7.2 billion spent on the platform last year. Further research indicates that about 67% of American men and 41% of women watch porn on sites like OnlyFans annually, especially among young adults—57% of those aged 18-25 admit to consuming adult content, compared to just 29% of those 26 and older.
Although some advocates, like the Heritage Foundation, argue for the decriminalization of porn in the U.S., Jessica Guettel, a financial planner for sex workers, expressed concern about potential government crackdowns on adult content. “The direction the government seems to be taking may lead to severe restrictions or worse,” she said, highlighting the anxiety it creates for her clients, suggesting that the IRS could potentially be weaponized against them.
