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OnlyFans Stars & Other Social Media Influencers Beware of IRS Audits & Criminal Investigations
OnlyFans has gained tremendous popularity over the past several years, especially during the COVID-19 pandemic when people were home with time on their hands.
If you are an OnlyFans Star or are a social media influencer on another site, the IRS may be auditing your tax returns or looking at you for a criminal investigation.
OnlyFans and other similar websites will send their contributors’ payments and should be issuing a Form 1099 for such income. However, some sites either do not send a Form 1099 or an inaccurate Form 1099. That is why it is important that you make sure that you report all your gross receipts or sales from your business. Since most payments from OnlyFans are made electronically into your bank account, a simple addition of all payments into your bank accounts and to all other money transfer companies, e.g., Zelle, and PayPal, should be done before you file your tax return.
Then, we have expenses. Expenses for OnlyFans stars and others who create content for social media through YouTube, Instagram, and others, will be scrutinized by the IRS. First, the IRS will want proof that you actually had the expense in the year you claimed it. This substantiation can usually be done with actual receipts, credit card statements, and bank statements. But, remember, the actual receipt is the best evidence. Assuming you have the receipts and can prove you incurred the expense, the IRS will want you to prove that such expense is not personal and is ordinary and necessary to your business. Social influencers have many atypical expenses that run-of-the-mill businesses do not have. Travel is a typical expense the IRS will always scrutinize. So, it is important that all pictures, videos, etc. taken while traveling for your business are kept. If you can geotag your pictures and/or videos, all the better.
Facing an IRS Audit? Get in Touch with Former IRS Attorneys for Expert Guidance
If you’re facing an IRS audit, you need representation from leading tax attorneys, call Silver Law, PLC. Our team of experienced tax lawyers, with over 100 years of experience, are former IRS employees, which means we have a solid understanding of both sides of a tax controversy. We use our knowledge, experience, and expertise as we fight aggressively for the rights and interests of our clients. If you’ve received a notice from the IRS and aren’t sure what to do next, contact us to schedule your confidential consultation. We will review your legal options, help you understand how tax law applies to your situation, and provide trusted legal guidance.
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