If you are not able to pay all of your taxes, you can set up an installment agreement to make payments to the IRS. It is also possible that you could qualify for an Offer in Compromise, but that could be a bit more tricky, depending on your circumstances.
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/individuals/payment-plans-installment-agreements">https://www.irs.gov/individual...>
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/individuals/offer-in-compromise-1">https://www.irs.gov/individuals/offer-in-comp...>
As Opus said, are you "insolvent"? If so, you may be able to reduce or eliminate the taxes on the forgiven debt. Fill out the worksheet on page 8 of this link to determine if you are "insolvent" or not:
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/p4681.pdf#page=8">https://www.irs.gov/pub/irs-pdf/p4681.pdf#page=8</...>
