Be aware that limitation can be tricky to determine in many states.
If the Statute of Limitations actually did expired 3 years ago, they should have sent you a 1099-C for that year, and you would need to pay taxes on it for that year.
Which Code is on the 1099-C?
They are both responsible for it, but in most cases they would each claim half. However, I've read situations where if both parties don't claim half, the IRS will keep coming after both parties until 100% of it has been reported.
