Hello,

I put myself through college and law school with student loans and became disabled shortly after passing the bar and was unable to pay any of the $100,000 student loan ($200,000 with accrued interest). Because my disability was permanent, after 20 years of disability, the total $200,000 owed was discharged in the year 2011. My only income is and has been $980/mo SSDI. I never filed a tax return over the years because it's not required based on my income. I didn't file in 2011 because the discharge was conditional based on my not working over the following three years, which I didn't. I assumed it was taxable income in 2014 since that's when the 3-year conditional discharge period ended. Turns out the discharge actually was for the year 2011, for tax purposes, thus taxable income for that year.

My question is: I have never heard from the IRS on this loan discharge. Should I assume they don't know about the discharge? If I file a return for the year 2011, they will then know for sure. I don't have any assets to speak of, except a 2012 Corolla. No savings or retirement plan. I am single so no spousal assets. If I file for the year 2011, I would file an offer in compromise, maybe offering $500. But I'm tempted to do nothing since the IRS doesn't seem to even be aware of the debt forgiveness income for that year.

Thanks so much for any help on this matter!