Do you FILE the actual insolvency worksheet with the IRS? I got a 1099-C for cancelled debt and am filling out form 982. But it has a worksheet. Doyou file that too?

You need to complete the worksheet. However, the insolvency worksheet is something that you need to keep with your records along with any financial statements that were used to figure your insolvency. If the IRS has questions about the insolvency calculation they will send you a letter to make the request, and you will need to send the worksheet and your documentation for the IRS' review.