HELP!

first let me say this this CACH LLC is a complete JOKE! my husband had 2 accounts bought buy these fools. these account were then forwarded to 2 different law firms. i've contacted both law firms, who by the way might i say were more then willing to talk to me and give me all of the ins and outs of the accounts. i thought that was completley shady, they never ask who i was and my name nor SS # are on the accounts. anyways, i learned that both accounts were payed and settled. the law firms nogociated and collected the debt which was then forwarded to CACH. now my husband has recieved a letter from the IRS, which basically states that they contacted CACH and CACH had verified that they paid this "income" to my husband. What "income"??????? this was not an income it was a debt that was bought by CACH and payed by my husband. so i'm trying to find out 1. who sent his info to the IRS?.....my assumption would be CACH. 2. Why is the IRS calling this an "income"? 3. Does my husband really owe the IRS for a debt that was settled and payed for.

IF anyone could shed any light on my problem it would be greatly helpful and appreciated!!!!!!!!!!!!!!!!!!!!