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4. If you report $500 of income but no expenses, the extra tax is going to be about $60-$120, and you wont owe any penalties for not paying in advance. It will probably just reduce your normal refund. 5. If you dont report it, the IRS will probably not find out, since less than 1% of taxpayers are audited. But reporting it is the right thing ...

In that case, person 1 is the sole owner of the onlyfans business, and person 2 is their subcontractor (not employee--that would create a huge hassle), and they have separate businesses. However, if it is a true partnership, where responsibility and decision making is shared, then it must file a partnership tax return.

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.

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