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Do sites even withhold or report big tourney wins?

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No they don't report anything, but why would that matter? The only safe way to not report it is if you can find a way to never let your gambling winnings get in your bank accounts or credit card statements.

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Do sites even withhold or report big tourney wins?

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ROFL. Sure, the IRS just hates wasting time trying to get people to pay the full taxes they owe.

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Of course online legal and tax advice is worth exactly what you paid for it.

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I guess your post isn't totally wrong.