Understanding your CP40 notice

What 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. 

What you can do

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

Frequently asked 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.