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SDSS J163459.82+204936.0 is a local (z = 0.1293) infrared-luminous quasar with LIR = 1011.91 . We present a detailed multiwavelength study of both the host galaxy and the nucleus. The host galaxy, appearing as an early-type galaxy in the optical images and spectra, demonstrates violent, obscured star formation activities with SFR ≈ 140 yr−1, estimated from either the polycyclic aromatic hydrocarbon emission or IR luminosity. The optical to NIR spectra exhibit a blueshifted narrow cuspy component in Hβ, He i λλ5876, 10830, and other emission lines consistently with an offset velocity of ≈900 , as well as additional blueshifting phenomena in high-ionization lines (e.g., a blueshifted broad component of He i λ10830 and the bulk blueshifting of [O iii]λ5007), while there exist blueshifted broad absorption lines (BALs) in Na i D and He i λλ3889, 10830, indicative of the active galactic nucleus outflows producing BALs and emission lines. Constrained mutually by the several BALs in the photoionization simulations with Cloudy, the physical properties of the absorption line outflow are derived as follows: density 104 < nH ≲ 105 cm−3, ionization parameter 10−1.3 ≲ U ≲ 10−0.7 , and column density 1022.5 ≲ NH ≲ 1022.9 cm−2, which are similar to those derived for the emission line outflows. This similarity suggests a common origin. Taking advantages of both the absorption lines and outflowing emission lines, we find that the outflow gas is located at a distance of ∼48–65 pc from the nucleus and that the kinetic luminosity of the outflow is 1044–1046 . J1634+2049 has a off-centered galactic ring on the scale of ∼30 kpc that is proved to be formed by a recent head-on collision by a nearby galaxy for which we spectroscopically measure the redshift. Thus, this quasar is a valuable object in the transitional phase emerging out of dust enshrouding as depicted by the co-evolution scenario invoking galaxy merger (or violent interaction) and quasar feedback. Its proximity enables our further observational investigations in detail (or tests) of the co-evolution paradigm. [ABSTRACT FROM AUTHOR]