Kaufman's second most well known character would be "Tony Clifton", the abusive lounge singer. Clifton began opening for Kaufman at comedy clubs and eventually even performed concerts on his own around the country. Sometimes it was Kaufman performing as Clifton, sometimes it was his brother Michael or his friend Bob Zmuda. For a brief time, it was unclear to some that Clifton was not a real person. News programs actually interviewed Clifton as Kaufman's opening act. The interviews would usually turn ugly whenever Kaufman's name came up, because Clifton would claim that Kaufman was using him to get rich.

Clifton was, at Kaufman's insistence, hired for a guest role on Taxi, but after throwing a tantrum on stage, had to be escorted off of the ABC studio's lot by security guards. Much to Kaufman's delight, this incident was reported in the local newspapers