Onlyfans

[qveenfiji99]

So I’m a little confused. I took a break from only fans for a long time and didn’t think I made enough to include it in my takes. So I filed my taxes anyways and they got accepted and approved the same day February 9th 2022. A couple weeks after I did my taxes I got a letter in the mail from onlyfans and I made a little over $700. Fast forward to today I have not gotten my federa return yet as of April 4th 2022. I got a letter in the mail from the irs today saying they are holding my return until they can verify the accuracy of my return due to either income, income tax withholding, tax credits or business income. Could this be due to the fact that my onlyfans money wasn’t included? Will I need to amend this? The letter states once they finish their review they will either send me my refund, ask for more info, send part of or none of my refund at all. 

[SForrestLO]

This is something Turbo Tax will not know. You can contact the IRS to inquire. 

Please see this Turbo Tax FAQ on when to amend.
https://ttlc.intuit.com/community/amending/help/do-i-need-to-amend/00/27607

[fanfare]

a letter is not enough.

Did you get a 1099-NEC from onlyfans ? That's what counts.

Did you leave anything else off your tax return?

[ColeenD3]

Yes, you need to amend your return to include the income, regardless of what else is going on with your return. Mail it return receipt requested, so you know when they received it.

It's great if they send you an official reporting form, so you should request one. They may have sent one to the IRS and that is what they are seeing as not being reported. In the meantime report it as cash and note no reporting form was sent. This is the second option below.

[qveenfiji99]

So I got the actual form Onlyfans sends out regarding income. But I did not get it until after I already filed. This is around February 9th. Fast forward to no. The irs sent me a letter stating they are holding my refund for multiple possible reasons. I’m assuming it’s because of my onlyfans income not being reported on accident. The letter said it could take up to 60 days for them to review it. So do I wait to see if anything changes since they sent me that letter or do I amend my return and send it in?

[ErnieS0]

Yes. Wait until IRS finishes processing your return. Filing an amended return nowt will only cause confusion.

Amended returns take 16 weeks or more to process so the IRS will get back to you before they even see the amendment. Then they will probably reject the amendment because it doesn’t match their correction.

If OnlyFans sent you a letter but not a Form 1099, then it means the $700 was not reported to IRS and there is another issue IRS is looking at.

You do have to file an amended return to report the $700 even if you never got a 1099. All income is taxable — whether you received a form or not.

But wait until you hear form the IRS. You may have to make additional changes.

[fanfare]

The IRS is screwed up.

If you amend and pay your amended tax due now, IRS will send the money back to you because it takes so long to get to your 1040-X

This makes it impossible to pay by April 18th to avoid late payment.

---

If you e-Filed 1040, you can e-File 1040-X and it will shoot right in there.

you have to pay any amount you owe on the IRS payments page.

[qveenfiji99]

Okay. I was and still am just a little confused because since the irs sent me a letter saying they are reviewing my return I don’t know if I should go ahead and amend it or wait until I hear back from them. 

[fanfare]

It will be many months before you hear another peep out of the IRS.

[qveenfiji99]

So do you think I should wait to hear from the irs or go ahead and try to amend my taxes and get them sent in. 

[fanfare]

@qveenfiji99 

If it were my situation, I would e-File 1040-X now and pay the amount you owe by April 18.

Make sure 1040-X is correct before you submit it.