The song was written by Dolly in 73 and she presented it to him that same year before she herself released it. This story comes from Elvis insiders like Dolly, Priscilla, and others reporting how the song offer went down and was rejected, thanks to Col Tom. Elvis, however, loved the song and did know of it because of the offer.
We're aware the year is in question. The report comes from Dolly herself, as told to her from Pricilla. And because of this, we'll not question the facts. Though, I agree, it doesn't seem to add up.