You can try. For a situation like this, usually you have to write in a letter requesting a reconsideration of Audit. To get the right location for where you will send the information, you will want to call the IRS and see if they can provide you with specific instructions. Then you submit your documentation to show that the reported cancellation of debt was misapplied and should have been the prior year. One word of caution: it takes a while for a situation like this to be considered and (maybe) resolved.
Thus, if you do go this route, I would recommend you continuing to make any installment payments you are currently required to make until you hear otherwise. That way, if you don't get the reconsideration granted, you do not pay more than a stamp and a phone call or two.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
