Are you referring to the insolvency worksheet (inside Publication 4681)? If so, you will fill it out with the information about your liabilities and assets as of immediately before the debt was cancelled.
For example, let's say that your debt was canceled on 01/31/2018. When filling out the insolvency worksheet, you will include your liabilities and assets as they were on 01/30/2018. You may have to do some digging to do this information, but it is imperative that your entries are as accurate as possible. You will then report the insolvency on Form 982. Keep the insolvency worksheet and all of your supporting documentation in the event that you are audited and the IRS/state tax authority wants to see it.
If you had canceled debts in multiple years, you will need to determine if insolvency was a factor for each year. For example, if you had debts cancelled in 2019 and 2018, you will need to determine insolvency for Form 982 for 2019 and 2018.
Please visit Publication 4681 and Instructions for Form 982 and read the rules and restrictions very carefully.
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