IRS won’t collect on Zeek Rewards’ unpaid taxes


The Zeek Rewards Receiver filed his second quarter 2021 report on July thirtieth.

Not a lot occurred within the second quarter exterior of the IRS dropping an enchantment case.

Throughout the second quarter, the IRS Workplace of Appeals issued a willpower within the IRS Appeals listening to carried out in 2020 concerning the IRS’s try and levy on sure belief property.

The IRS granted the Receiver’s request to have RVG’s accounts positioned right into a defunct, uncollectible standing as a result of there are usually not enough property to pay the Class 4 claims at the moment.

The unpaid taxes and penalties stay owed, however the IRS won’t try to gather absent a big change in revenue that might allow Class 4 claims to be paid.

Based mostly on the remainder of the Receiver’s report there doesn’t look like any important pending incoming funds, so the IRS enchantment determination would successfully be closing.

One focal point is a butthurt net-winner in Florida submitting a lawsuit.

Within the second quarter, the Receiver was compelled to look in a lawsuit in Florida state court docket filed by a former Web-Winner defendant.

The lawsuit challenges the judgment obtained within the federal Web-Winner class motion and names the earlier Receiver because the defendant.

The Receiver filed a movement to substitute himself for the earlier Receiver as defendant in order that he might defend the motion and search dismissal.

Zeek Rewards’ net-winners have constantly been steamrolled in court docket, so I don’t see that lawsuit going anyplace.

Trying ahead the Receiver ‘expects to start the method of winding down the Receivership within the third quarter of 2021’.

This can coincide with a closing distribution of the ~$15 million nonetheless held by the Receivership.

We’ve simply entered the third quarter so hopefully we’ll have some progress on a closing distribution cost quickly.