Why did we receive a Certificate of Release of Federal Tax Lien? 8 Answers as of April 20, 2011

My husband owes taxes for years 2000 and 2001. Last year we filed for chapter 7 bancruptcy and included his tax debt with the other debts. Today he received a Certificate of Release of Federal Tax Lien. The certificate states the last date to refile is in 2014. Does this mean his tax debt was discharged? Does he still owe money? Will we finally get our federal refund this year?

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Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
It would appear that your taxes were old enough to have been discharged in the Chapter 7. They are not going to pursue further collection, which is why the lien was released. You should get refunds now.
Answer Applies to: California
Replied: 4/20/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Taxes are collectible for 10 years. In a bankruptcy if there is a tax lien, the lien remains on whatever property you have. Example: You owe the IRS 10,000. You own property (clothes, car, jewelry, etc.) worth 2500.00. After the bankruptcy you owe the IRS 2500.00, the rest is discharged IF the tax is over 3 years old and has been assessed by the IRS for 240 days at the time the bankruptcy was filed. Books have been written on this subject, and it complex. These just some basic guidelines.
Answer Applies to: California
Replied: 4/19/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
You must ask the attorney who filed your bankruptcy. They should be able to explain it.
Answer Applies to: Alabama
Replied: 4/18/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
It is likely, from your statements, that your federal tax obligation was discharged by the bankruptcy.
Answer Applies to: Indiana
Replied: 4/18/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
When the taxes owed have been paid, the IRS will normally issue a Release of the Notice of Federal Tax Lien. Alternatively, this notice is sometimes issued when the IRS is no longer interested in collecting taxes owed. The IRS has standard operating procedures that they follow on all these matters. As a general rule, the IRS will remove the lien within 30 days of payment. The process is considered final when the taxpayer receives a Certificate of Release of Federal Tax Lien. As a result it would appear that your receipt of this Release discharges and releases him from the tax liability in question and that any refund due on your 2010 return would be sent to you under normal IRS rules.
Answer Applies to: Pennsylvania
Replied: 4/18/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Bankruptcy discharges federal income taxes if they are more than three years old and files close to on time. So those debts should have been discharged and you should get your refund.
    Answer Applies to: Virginia
    Replied: 4/18/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Income taxes are dischargeable if all of the following prerequisites are met as of the date your bankruptcy case was filed: (1) it has been more than 3 years since the returns were last DUE (including extensions) to be filed, (2) the returns were timely filed _or_ it has been at least 2 years since the returns were filed, (3) there was no fraud involved or attempts to evade the tax, AND, (4) the taxes were not assessed within the last 240 days. Most likely the release of tax lien means that the taxes were discharged, and the IRS voluntarily decided to release whatever lien they had against assets you owned on the date your bankruptcy case was filed.
    Answer Applies to: California
    Replied: 4/18/2011
    David Hoines Law
    David Hoines Law | David Hoines
    It appears as though your tax lien is gone. Regarding your tax refund you need to talk to your bankrupt lawyer.
    Answer Applies to: Florida
    Replied: 4/18/2011
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