We have been through a debt settlement process. Not the best option- but it is now done. Problem is that we used $60,000 from our IRA's and it was an early distribution. question 1: do we have to include the forms 1099-C when our debts far out surpassed our assets? question 2: is there anyway to avoid some of the extra taxes and penalties since we used the money for debt settlement? question 3: If we are looking at a tax bill now of $20,000+ is it worthwhile to use a tax debt setttlement company?

Thanks for any help-