In: Accounting
Marie had borrowed the sum back in 2014 and have "used this benefit" to meet her requirements. In 2019, the creditor for some reason has forgiven that debt.
As per the IRS Topic 431, any debt cancelled or discharged for less than what is owed is income and hence should be included in the tax returns as income. Such cancelled debt are only exempted from tax unless specifucally excluded.
Marie though hasn't received any benefit at the event of cancellation of debt, however has benefited from Money borrowed years back. She has also been waived off from paying any consideration for such benefits.
Summing up the above, Marie has to report the canceled debt on her tax return for the year the cancellation occurs ie 2019.