irs is asking for taxes on money never earned after nigerian scam

I live in maryland my sister lives in illinois and is too embarrassed to ask for help. About 2 years ago she got caught up in something similar to a Nigerian scam where someone sent her a check for her to cash for $8,000 saying they would give her a portion of it if she cashed it (I think) anyway the bank cashed it but later found out either the Bank of Ireland didn't exist or there was no account in this persons name. Her bank said she was responsible for the check, she has no money to speak of eventually the bank just dropped it and wrote it off as a bad debit. She received no money from the scam however the bank reported the $8,000 to the i.r.s. as income now the i.r.s. wants $2,000 in taxes. Is she liable for this money even though she never received 1 cent?

How much money did she end up with if any.

That is part she has to pay taxes on if the bank lost out.

But if she got nothing and actually lost money, she need not pay taxes and in fact can get a refund from the IRS.

World Law's lawyers could also probably help resolve this if need be. You might email them on the home page.

The YMMSS victims got caught up with the IRS, too. WLD dedicated a section where you can see how they dealt with it. Top of Internet Scams, I believe.

Yes, that info applies here too and is very helpful.

She can avoid paying those taxes.