The money would still be owed, not cancelled at all. and her refunds subject to seizure by the IRS. She could still be billed for the balance on the debt. We cannot comment on your legal remedies because this is a forum for tax questions and we are qualified to comment on court remedies. You would have to see a local attorney to see if you have any civil court remedies. You could always start with Legal Aid and see what they say.
