OnlyFans Creator Charged with Tax Fraud Highlights Compliance Gap for Content Creators

August 15, 2025 — Kylie Leia Perez, who operated under the stage name "Natalie Monroe" on OnlyFans, has been indicted on one count of filing a false tax return and four counts of failing to pay income tax. According to the indictment, Perez earned more than $5.4 million from OnlyFans between 2019 and 2023 but failed to pay at least $1.6 million in taxes owed. If convicted on all counts, she faces a maximum penalty of seven years in federal prison.

The case, announced by the U.S. Attorney's Office for the Middle District of Florida on August 14, 2025, highlights a growing compliance problem: many internet content creators, influencers, and social media personalities may not realize that their earnings from platforms like OnlyFans, Patreon, YouTube, TikTok, Instagram, and other monetized content platforms are taxable income that must be reported to the IRS.

The Perez Case

According to the indictment, Perez was a content creator on OnlyFans, a subscription-based social media platform that allows creators to monetize content through subscription fees, pay-per-view content, and tips from subscribers. From 2019 through 2023, Perez earned more than $5.4 million from the platform. Despite this substantial income, she engaged in a scheme to evade the assessment of taxes by filing a false tax return for calendar year 2019 and failing to pay at least $1.6 million in taxes owed for calendar years 2020 through 2023.

The charges include:

• One count of filing a false tax return (26 U.S.C. § 7206(1)), which carries a maximum penalty of three years in federal prison
• Four counts of failing to pay income tax (26 U.S.C. § 7203), each carrying a maximum penalty of one year in federal prison

The case was investigated by IRS Criminal Investigation (IRS-CI) and will be prosecuted by Assistant United States Attorney Carlton C. Gammons.

The Broader Compliance Problem

The Perez case is not an isolated incident. As the creator economy has grown—with platforms like OnlyFans, Patreon, YouTube, TikTok, Instagram, Twitch, and others enabling millions of individuals to monetize content—many creators may be unaware of their tax obligations or may mistakenly believe that income received through these platforms is not taxable.

This misconception can have serious consequences. Content creators and influencers who earn income from these platforms are generally considered self-employed for tax purposes, which means they must:

1. Report all income: All earnings from content creation, including subscription fees, tips, donations, sponsorships, affiliate commissions, and revenue from merchandise sales, must be reported as income on Schedule C (Form 1040).

2. Pay self-employment tax: Self-employed individuals must pay self-employment tax (currently 15.3% on net earnings up to $168,600 for 2024, and 2.9% Medicare tax on earnings above that threshold) in addition to regular income tax. This covers both the employee and employer portions of Social Security and Medicare taxes.

3. Make estimated tax payments: Self-employed individuals who expect to owe at least $1,000 in tax for the year must make quarterly estimated tax payments. Failure to make these payments can result in penalties and interest.

4. Maintain records: Content creators must maintain records of all income and business expenses, including receipts, invoices, bank statements, and platform statements showing earnings.

5. File accurate returns: Filing false returns or failing to file returns can result in civil penalties, interest, and, in cases involving willful conduct, criminal prosecution.

Common Misconceptions

Many content creators operate under misconceptions that can lead to noncompliance:

• "It's not real income": Some creators may view platform earnings as "tips" or "donations" that are not taxable. In reality, income from content creation is taxable regardless of how it is characterized by the platform or the creator.

• "I didn't receive a 1099": Platforms are required to issue Form 1099-NEC (for nonemployee compensation) or Form 1099-K (for payment card and third-party network transactions) only if earnings exceed certain thresholds ($600 for 1099-NEC, $20,000 and 200 transactions for 1099-K in 2024). However, the absence of a 1099 does not eliminate the obligation to report income. All income must be reported, regardless of whether a 1099 is issued.

• "It's a hobby, not a business": The IRS distinguishes between hobbies and businesses, but income from hobbies is still taxable. If a creator has a profit motive and engages in content creation with regularity, the activity is likely a business, which means expenses can be deducted but self-employment tax applies.

• "I can deduct everything": While business expenses can be deducted, personal expenses cannot. Creators must distinguish between business expenses (e.g., equipment, software, professional services, home office expenses if the home office is used exclusively for business) and personal expenses (e.g., personal clothing, personal travel, personal meals).

The IRS Enforcement Focus

IRS Criminal Investigation has made tax fraud by high-earning individuals a priority, particularly in cases involving substantial unreported income. The Perez case, with $5.4 million in unreported earnings and $1.6 million in unpaid taxes, represents the type of case that draws criminal investigation.

Content creators who have failed to report income or pay taxes should consider consulting with a tax professional and, if appropriate, exploring voluntary disclosure options. The IRS offers programs that may allow taxpayers to come into compliance while avoiding criminal prosecution, though eligibility depends on the specific facts and circumstances.

Bottom Line

The Perez case serves as a stark reminder that income from content creation is taxable, regardless of the platform or the method of payment. Content creators, influencers, and internet personalities who earn income from their online activities must comply with federal tax laws, including reporting all income, paying self-employment tax, making estimated tax payments, and maintaining accurate records.

Those who have failed to comply should seek professional tax advice and consider voluntary disclosure options. Those who are currently compliant should ensure they continue to meet their obligations, particularly as their earnings grow and their tax situations become more complex.

The creator economy has enabled millions of individuals to earn income in new ways, but it has not changed the fundamental principle that all income is taxable unless specifically excluded by law. The Perez case demonstrates that the IRS will pursue criminal charges against those who willfully evade their tax obligations, regardless of how they earn their income.