Why did we receive a Certificate of Release of Federal Tax Lien and what do we do? 6 Answers as of August 27, 2015

My husband owes taxes for years 2010 and 2011. Last year we filed for chapter 7 bankruptcy 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 2017. Does this mean his tax debt was discharged? Does he still owe money? Will we finally get our federal refund this year?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
2010 may have been dischargeable depending on when you filed the return and when the bankruptcy was filed. I have no idea why you received the lien release.
Answer Applies to: California
Replied: 8/27/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Sounds like it was discharged to me.
Answer Applies to: New York
Replied: 8/26/2015
Ronald K. Nims LLC | Ronald K. Nims
Tax debts are dischargeable 3 years after the return is filed. If the 2010 return was filed on time, the 3 years would have expired in April 2014. The 2011 debt isn't discharged because the 3 years would have expired in April 2015.
Answer Applies to: Ohio
Replied: 8/25/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
The release of the tax lien is a preliminary decision the IRS made that means it will not look to your property to collect its tax debt. It is not a permanent decision, nor is it evidence that this tax debt was discharged by your bankruptcy. It does not mean you will receive a tax refund next year, if eligible. In short, this notice tells you very little at all.
Answer Applies to: Nevada
Replied: 8/25/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
I think all you can know for sure is that the feds no longer claim a lien on your property. The existence of a tax debt, however, may not be affected. In other words, they probably can demand the money from you, but not foreclose on your homestead. Consult your bankruptcy lawyer. If you did not have one then, consult one now.
Answer Applies to: Wisconsin
Replied: 8/25/2015
    Mark S Cherry, Attorney at Law, PC
    Mark S Cherry, Attorney at Law, PC | Mark Cherry
    Release of the lien does not necessarily release the tax. It appears as though the tax was probably released. You should contact the IRS and get a transcript for the years in question.
    Answer Applies to: New Jersey
    Replied: 8/25/2015
Click to View More Answers: