Debt resolution means working out an agreement with your creditors to pay less than the full amount you owe. Tax relief and tax resolution describe various policies and strategies for managing the debt you owe to the IRS.This is the standard resolution form that may be required when you apply for or request an increase of your idle loan. Postservicing actions consist primarily of Offers in Compromise and Charge Off actions for both Express and 504 loans. The TILA-RESPA Rule provides a detailed explanation of how the forms should be filled out and used. The first new form (Loan Estimate) is designed to provide. Taxes, Charges and Liens. This means that the Court has decided to fully discharge all of your student loans, and you will be relieved of all repayment responsibility. A default on an SBA loan triggers a tax event under Section 108 of the Internal Revenue Code, resulting in what is known as cancellation of debt (COD) income.