my balance was 213,000 and my fair market value was 230,000. Should I pay the IRS

Generally not, assuming that this was your principal residence. The 1099A is for is for information purpooses only. What this is showing is that you "sold" your house - which was worth $230K - to the lender in exchange for forgiving a loan of $213K. So the lender came out ahead. You therefore have nothing to report to the IRS, unless the $213K is greater than your cost basis.