You left your house and it was sold for less than you owed now you are being sued for the difference you filed bankruptcy now the IRS says that you owe taxes on that you did not get anything out of it?

Debt forgiveness is a type of income. If you borrow $1000 from your friend and then friend then forgives the debt, you have $1000 taxable income. In this case, you borrowed money to buy a house. You couldn't/didn't make the payments and lost the house. If you borrowed $200,000 and it sold for $190,000, you have $10,000 in tasable debt forgiveness. However, if you were insolvent at the time that the debt was forgiven you may qualify for an exception of counting this as income. Insolvency is defined, generally, as having debts that exceed your assets. If you lost your house, it's likely that this was the case for you. If that's the case this might be as simple as filing an amended return to claim the insolvency exception.