Why did we receive a Certificate of Release of Federal Tax Lien and what do we do?

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.

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.

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.

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.