I've been following all of the World Series Of Poker coverage on the web, and in many of the super satellite tournaments, when the final table gets down to two, three or four people, the remaining players will agree to divide a significant portion of the payoff between them, and finish playing the tournament awarding the remaining payout to the tournament winner. An example, three players were left on a final table, with the payout schedule showing roughly $121,000 for first, $61,000 for second, and $32,000 for third. The player agreed to equaly splitting $180,000, then played the remaining hands until someone won, awarding the winner the remaining $34,000.

My question is, does the Horseshoe payout at this level in negotiable chips so the three players who made this arrangement can only be held responsible by the IRS for what they actually left the table with, or are they paid in the form of written checks in the amount of the stated winnings (before the deal struck at the table by the players), and handed the tax paperwork for those
amounts. ....or does the IRS not figure into the process at all?

I have a goal of someday playing in the big one...

Bob