IRS CP40 Notice: Verify a Private Tax Collector Before You Respond
IRS CP40 Notice: Verify a Private Tax Collector Before You Respond
A letter from a private tax collector can be unsettling. An IRS CP40 notice means the IRS assigned your overdue federal tax account to a private collection agency. It does not mean every caller claiming to collect taxes is legitimate.
Start with the letters
The IRS sends CP40 before the collection agency contacts you. The agency also sends its own confirmation letter before calling. Keep both letters somewhere secure. Look for the CP40 code near the upper right and the assigned agency’s name and contact information in the body of the notice.
Use two-party verification
Use the phone number on the notice, not a number supplied by an unexpected caller. In the two-party check described on CP40, you provide the first five digits of the Taxpayer Authentication Number, and the agency provides the other five. This is not your Social Security number. If you cannot verify the contact, pause and confirm the assignment with the IRS before sharing information or discussing payment.
Know the payment boundary
Payments go to the IRS, not directly to the collection agency. Requests for gift-card payment are a warning sign. The agency cannot issue a levy or file a Notice of Federal Tax Lien. Those enforcement powers belong to the IRS.
Get clarity before choosing a plan
If you’re unsure what balance the notice covers or what you can realistically afford, contact our team through this website. We can help you review the notice, understand the options available to you, and plan your next steps.
General information, not individualized tax or legal advice.