Plot hole: "Dorothy Michaels" does not exist, but suddenly becomes famous. It is simply not feasible that nobody looks into her background! Not one single print or television reporter is interested in her life story? Nobody has ever wondered where she came from, has checked into what other roles she had played, or has expressed interest in her personal life? That's impossible.
Plot hole: Since "Dorothy Michaels" does not exist, she will not have a Social Security number. Even with her agent acting as a go-between, the television production company, her employers, would have to have this for their records. Supplying a false Social Security number is a very serious offense (and is instantly detectable), as is employing someone without one.
Plot hole: Michael Dorsey is a jobbing actor working as a kitchen hand, and his flatmate Geoff is an aspiring writer trying to raise the capital to have his latest play on stage - yet they can afford a huge, open plan apartment in New York City. The rent on that apartment would easily exceed their combined income from their low-paying jobs. There is no indication that they are independently wealthy - why would they need Dorsey's fees from the soap opera to stage Geoff's play if they were?
Plot hole: Both Michael Dorsey and his agent, George Fields, would be sued by Southwest General's producers for fraud and breach of contract, and would almost certainly be prosecuted - signing a contract involving financial gain under a phoney name is a very serious offence. A high-powered agent like Fields would realise this was the inevitable outcome of the "Tootsie" charade, and he wouldn't touch it with a bargepole - and Dorsey would be blacklisted by every film and television company in the country.
Suggested correction: The apartment is a converted loft, and if they've lived there for 15+ years, the rent would be quite cheap.
A 2-bed converted loft in New York City is going to cost them about US$2500 a month in 2025 money. Where is that money coming from? We see no indication that Geoff is working at all, and Dorsey is a kitchen hand, probably netting the equivalent of about US$2800 a month. They can't afford to eat.
1) Rents have risen much faster than inflation in New York, especially in that neighbourhood. Rents in that neighbourhood were in the low hundreds per month in that neighbourhood at that time - closer to $1000 a month in 2025 dollars. 2) We see plenty of indications that Geoff is working; we see him and Michael at work, together. 3) That's not a "converted loft" in the 2025 sense. It's plainly obviously a dump. They've put up DIY walls and there's mould everywhere.