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CP40 notice: what it means and what to do
Got an IRS CP40 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP40 notice freeWhat the IRS says this notice is about
You received this notice because we assigned your unpaid tax account balance to a private collection agency. The notice contains the name and contact information for your assigned private collection agency which you’ll need to complete the two-party verification process.
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
You may be able to remove the penalties
If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.
Cannot pay it all now? Ask for a payment plan
You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
Work with your assigned private collection agency to resolve your unpaid account.
- The private collection agency will maintain the security and privacy of your tax information. Before assisting you, the agency will: ask you to provide your name and address of record, and
- perform two-party verification using your Taxpayer Authentication number provided in your notice.
Pay your balance now.
- Pay online. You can find ways to pay the IRS directly by visiting our payments page .
Helpful information
- Visit the private debt collection program site for more information.
- Download and read Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency PDF
Common questions
Why was my account transferred to a private collection agency?
The IRS is required by law to contract with private collection agencies to assist in the collection of certain unpaid tax accounts.
How can I be sure the private collection agency contacting me is under contract with the IRS? (updated Feb. 25, 2026)
Your notice contains the name and contact information of the private collection agency assigned your account. The names of all the private collection agencies under contract with the IRS can be found on the private debt collection program site. The private collection agency will also send you a letter confirming assignment of your tax account.
Can I plan to pay my taxes over time with the private collection agency? (updated Feb. 25, 2026)
Yes, the private collection agency will work with you to set up a payment plan if you can’t full pay when contacted.
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