Card Player Magazine has horrible reporting on any legal or tax issues regarding gaming. Whoever writes these articles must make up crap off the top of their head and not bother to read or check facts regarding the circumstances.
See the below article for an explanation on IRS tournament witholdings.
http://www.pokernews.com/news/2007/1...e-debunked.htm
While Tony G might act like an idiot on TV, he has enough sense to at least hire people who know how to write and check facts.