On Friday, the IRS issued a press release (http://www.irs.gov/irs/article/0,,id=174937,00.html) stating that reporting would be required only on poker tournament winnings of more than $5,000. This is actually an improvement over the current situation–many casinos are signatories to the Binion's Closing Agreement and must report tournament winnings at $600. Withholding will only be required if a winner refuses to provide his Social Security Number or ITIN (at 28%).
-- Russ Fox
http://www.taxabletalk.com/
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