@slimjim67- if there is a cancellation of debt, the IRS look at that as taxable income and you have to include that in your income tax return. From the IRS standpoint, when the bank cancels a debt, it is no different than earning the income to be reported. And as with all income, there is tax to be paid on it.
Sounds like you didn't include the form in your 2022 tax return and the IRS picked it up on an audit.
