I'm sorry that I can't give you a 100% answer, only an opinion, but since no one else is responding I'll try and give it a go.

From what I've been reading, the short answer is it depends on when your day trading schedule ended, but no you wouldn't have to pay the tax on the 17k unless your trading went past Jan 2011. Reason being, your broker isn't responsible for wash sale transactions, so it is up to you to properly file your schedule D. An example would illustrate my point better than an explanation, so here goes:

Suppose you buy abc stock for $5k and sell it the same day for $4k. Then the next day, you buy abc stock again for $5k but sell this time for $6k.

Here's what you thought you did:
-$1000 on 1st transaction (-5000 + 4000)
+$1000 on 2nd transaction (-5000 + 6000)
$0 net difference

Here's what actually happened:
$0 on 1st transaction (wash sale)
$0 on 2nd transaction (-6000 + 6000)
$0 net difference