Federal prosecutors in Tampa have indicted Kylie Leia Perez, better known online as “Natalie Monroe,” on charges of filing false tax returns and evading more than $1.6 million in federal income taxes. According to the indictment, Perez earned over $5.4 million through OnlyFans between 2019 and 2023, filed a false return in 2019, and then failed to file any returns from 2020 through 2023. If convicted, she faces up to seven years in federal prison.

This is not a civil tax issue where penalties and payment plans can settle the matter. These are federal criminal charges that require prosecutors to prove willful intent—a much higher standard that carries the very real possibility of prison time.

This case is a reminder that online creators are not exempt from tax laws. OnlyFans, like other platforms, reports earnings directly to the IRS using 1099 forms. Those earnings must be reported, and because creators are considered self-employed, they are responsible for both income tax and self-employment tax. With income that fluctuates and often arrives in large amounts, quarterly estimated tax payments are usually required. While legitimate business expenses such as equipment, workspace, or marketing can reduce the tax burden, those deductions only matter when the income is properly reported and supported by accurate records.

Here’s what Kylie should have done. Treat content creation as a business from day one. Keep finances separate, maintain accurate records, and work with professionals who understand both digital business models and tax law. When the IRS sends a notice, respond immediately. Hoping the problem disappears is the worst possible move. Once prosecutors bring charges, the government already has years of records, financial data, and tax filings. By then, the case is built.

From a defense perspective, the focus must be on whether prosecutors can prove intent, whether their claimed tax losses are accurate, and whether there is room to negotiate outcomes that minimize prison exposure. These cases require attorneys who understand both federal criminal defense and the complexities of tax law.

The broader message is clear: the IRS and federal prosecutors are paying close attention to high-earning digital creators—not just on OnlyFans, but also on YouTube, Twitch, Instagram, and other platforms. Every creator should treat their work as a business, take compliance seriously, and get sound legal advice before the IRS and prosecutors come knocking.

Perez now faces the possibility of years behind bars because she chose not to file or pay her taxes. For every digital creator watching this case unfold, consider this your warning.