IRS Notice CP40: What It Means & What to Do
CP40 means the IRS assigned your unpaid balance to a private collection agency. Learn how to verify the agency, pay the IRS directly and set up a payment plan.
Written and maintained by Joseph Lancaster, Settlement Officer since January 2013
Published · Checked against IRS sources on
Quick answer
What is an IRS CP40 notice and what should I do?
CP40 means the IRS assigned your unpaid balance to a private collection agency. Verify the agency with the Taxpayer Authentication number on the notice, then pay the IRS directly or set up a payment plan.
Who this applies to: People with an unpaid tax balance that the IRS assigned to a contracted private collection agency.
What can change this answer
- The notice names your assigned agency
- Two-party verification is required
- Payment plans are available
Recommended next step
Verify the agency, then choose a way to pay or set up a payment plan.
Read the full guideCP40 means the IRS assigned your unpaid tax balance to a private collection agency. The notice names the agency and includes a Taxpayer Authentication number used to verify that you are dealing with the right agency.
Immediate Steps to Take
- 1Note the agency name and Taxpayer Authentication number on the notice
- 2Confirm the agency is on the IRS private debt collection program list
- 3Complete two-party verification before discussing your account
- 4Pay the IRS directly, or ask the agency to set up a payment plan
What CP40 means
The law requires the IRS to contract with private collection agencies to collect certain unpaid tax accounts. CP40 tells you your account was assigned to one of them and gives you its name and contact information. The agency will also send you a letter confirming the assignment.
How to verify the agency
Before helping you, the agency will ask for your name and address of record and complete two-party verification using the Taxpayer Authentication number on your notice. Check that the agency on your notice appears on the IRS private debt collection program page. If someone contacts you claiming to collect for the IRS and it does not match your notice, do not share information.
How to resolve the balance
You can pay the IRS directly through IRS.gov payment options. If you cannot pay in full, the agency will work with you to set up a payment plan. See installment agreements for how IRS payment plans work.
Frequently Asked Questions
Why was my account sent to a private collection agency?
The IRS is required by law to contract with private collection agencies to help collect certain unpaid tax accounts.
How do I know the agency is legitimate?
Your CP40 names the assigned agency, and the IRS lists every contracted agency on its private debt collection program page. The agency also sends a letter confirming the assignment.
Can I set up a payment plan with the agency?
Yes. The IRS says the agency will work with you to set up a payment plan if you cannot pay in full.
Authority Citations
This content is based on the following official IRS sources. All links open in a new tab.
Information current as of 2026. Tax laws change frequently. Verify with official IRS sources before taking action.
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