Jim,

As I have said I know nothing about tax, however I have some questions.

you say "Now if you read what I have said you will see that the 300 to 1 rule NEVER comes into play for wagering pools."

Yet the official IRS intsructions http://www.irs.gov/instructions/iw2g/ar02.html#d0e125

say otherwise:

2. Sweepstakes, Wagering Pools, and Lotteries
File Form W-2G for each person to whom you pay $600 or more in gambling winnings from a sweepstakes, wagering pool, or lottery (including a state-conducted lottery) if the winnings are at least 300 times the amount of the wager. The wager must be subtracted from the total winnings to determine whether withholding is required and, at the option of the payer, to determine whether reporting is required. The wager must be subtracted at the time of the first payment.

The requirements in this section apply to church raffles, charity drawings, etc. In the case of one wager for multiple raffle tickets, such as five for $1, the wager is considered as $.20 for each ticket.

So who is right? Jim Perlowski or the IRS? Based on history I suspect that it is Jim, but I may be wrong.