I have been in on the problem since the Binion's HOF tournament was shut down due to the IRS in 1995.
My tournament at the FQ's was next on the circuit. After the agreement I talked to the IRS and got permission to follow the agreement. MY people did not want any problems with the IRS during it.

It is a very complicated situation.
IMO, if we don't want the IRS to rule that 28% of all poker tournamet wins over $5,000, must be witheld on a 1099, we need to follow the Binion's agreement for issuance of a W2G for tournament wins of $600 or over.
Like Jimbo, I'm tired of fighting the fight.
Poker tournaments will be the only loser when the IRS finally acts against us.