IRS won’t collect on Zeek Rewards’ unpaid taxes
The Zeek Rewards Receiver filed his second quarter 2021 report on July 30th.
Not much happened in the second quarter outside of the IRS losing an appeal case.
During the second quarter, the IRS Office of Appeals issued a determination in the IRS Appeals hearing conducted in 2020 regarding the IRS’s attempt to levy on certain trust assets.
The IRS granted the Receiver’s request to have RVG’s accounts placed into a defunct, uncollectible status because there are not sufficient assets to pay the Class 4 claims at this time.
The unpaid taxes and penalties remain owed, but the IRS will not attempt to collect absent a significant change in income that would permit Class 4 claims to be paid.
Based on the rest of the Receiver’s report there doesn’t appear to be any significant pending incoming funds, so the IRS appeal decision would effectively be final.
One point of interest is a butthurt net-winner in Florida filing a lawsuit.
In the second quarter, the Receiver was forced to appear in a lawsuit in Florida state court filed by a former Net-Winner defendant.
The lawsuit challenges the judgment obtained in the federal Net-Winner class action and names the previous Receiver as the defendant.
The Receiver filed a motion to substitute himself for the previous Receiver as defendant so that he may defend the action and seek dismissal.
Zeek Rewards’ net-winners have consistently been steamrolled in court, so I don’t see that lawsuit going anywhere.
Looking forward the Receiver ‘expects to begin the process of winding down the Receivership in the third quarter of 2021’.
This will coincide with a final distribution of the ~$15 million still held by the Receivership.
We’ve just entered the third quarter so hopefully we’ll have some progress on a final distribution payment soon.