Okay... well it looks like I still need help/advice.
Here's the background: A friend of mine in the US won a seat into the pokernews cup ME. He couldn't make it out b/c of work conflicts, but I was already in Australia studying abroad. We got his seat transferred to me, and agreed on a 50/50 split of the winnings. Then I went ahead and finished 6th for $47,900.
The casino gave me straight up cash, no taxes were taken or withheld for Australia.
Here's the problem:
How do I get my friend his half, and protect myself from having my door knocked down by the IRS wondering what happened to that money? He would rather not wait 6 months until I file and find out what I owe (can't blame him). What's my best course of action?
Further, if I were to pay taxes on it all, and then I send him his $2xk, is the government going to try to tax him again on that thinking its income? Can it be taxed as income twice?