IRS Notice CP40: What Is It and How to Respond
Summary:
The IRS Notice CP40 is issued to taxpayers whose tax accounts have been assigned to a private debt collection agency (PCA) to recover unpaid taxes. This notice serves as an official notification that the IRS has authorized the PCA to collect outstanding tax liabilities on its behalf. The letter includes details about the debt, the PCA’s contact information, and instructions on how to resolve the issue. Understanding how to respond to the CP40 notice can help taxpayers avoid further penalties, interest, or collection actions. This article covers everything you need to know about the CP40 notice and how to handle it effectively.
Receiving an IRS Notice CP40 can be concerning, as it indicates that the IRS has transferred your outstanding tax debt to a private debt collection agency (PCA). This action is part of the IRS’s effort to recover delinquent tax liabilities that it has not successfully collected through its usual processes. Although the PCA now handles the collection, taxpayers still have rights and options for resolving the debt. This article will explain what the CP40 notice entails, why the IRS assigns tax debts to PCAs, and what you need to do to resolve your situation effectively.
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What IRS Notice CP40 means
IRS Notice CP40 is a letter sent to taxpayers informing them that their unpaid tax account has been assigned to a private debt collection agency (PCA). The IRS assigns certain overdue tax accounts to PCAs as part of a program to recover unpaid taxes more efficiently. The notice serves to alert taxpayers that a PCA will be contacting them regarding the outstanding debt, providing details about the amount owed, the agency’s contact information, and instructions on how to resolve the balance.
The IRS sends this notice before any direct contact from the PCA, ensuring taxpayers are aware that the IRS has authorized the agency to collect the debt on its behalf. It’s important to note that the PCA cannot initiate legal action against you, such as placing liens or levies on your property. However, they will work with you to establish a payment plan or collect the debt in full.
Struggling with IRS notices? If you’ve received an IRS letter and aren’t sure how to handle it, you might want to explore professional tax relief options. Optima Tax Relief has helped thousands of people resolve their tax issues and get back on track with the IRS. Learn more about how they can assist you with your situation.
Why IRS uses private debt collection agencies
The IRS uses private debt collection agencies to help recover unpaid tax debts that are considered low-priority or older cases. These are typically accounts where the IRS has been unable to collect through its usual enforcement measures. The agencies are selected and authorized by the IRS to recover these debts, allowing the IRS to focus its resources on more recent or complex cases.
Types of debts assigned to PCAs
The IRS assigns specific types of tax debts to private debt collection agencies, including:
- Older, inactive accounts: Debts that the IRS has not actively pursued in over a year may be assigned to PCAs.
- Low-priority debts: Accounts that are not currently undergoing IRS enforcement actions, such as audits or criminal investigations.
- Unresolved accounts with no ongoing IRS actions: Cases where the taxpayer has not responded to prior IRS collection efforts.
By using PCAs, the IRS can free up resources to pursue more significant enforcement actions, while the private agencies focus on recovering smaller, less complex debts.
Pro Tip
Before engaging with a private debt collection agency, verify the agency’s contact information against the details provided in the IRS Notice CP40. This can help you avoid potential scams and ensure that you are dealing with a legitimate PCA.
How IRS Notice CP40 affects you
Receiving a CP40 notice indicates that your tax debt is now being handled by a private debt collection agency rather than the IRS directly. While this shift may seem daunting, understanding its implications can help you manage the situation. Here are some ways the CP40 notice can impact you:
- Communication: You will be contacted by the assigned PCA to discuss payment arrangements for your tax debt. It is essential to confirm that any communication you receive matches the information in the CP40 notice.
- Payment options: You can negotiate a payment plan directly with the PCA. Payment plans established through the PCA follow the same general guidelines as IRS payment agreements.
- Protecting your rights: While the PCA collects on behalf of the IRS, your taxpayer rights remain protected. The PCA cannot use aggressive tactics or threaten legal action. You also have the right to dispute the debt.
Steps to take after receiving IRS Notice CP40
Taking the right steps upon receiving a CP40 notice can help you resolve the debt efficiently and avoid further complications. Here’s what to do:
- Review the notice: Read the CP40 notice thoroughly to understand the details of your tax debt and the PCA assigned to your case.
- Verify the PCA: Ensure that the agency contacting you matches the details provided in the CP40 notice. Contact the IRS directly if you have any doubts.
- Discuss payment arrangements: Work with the PCA to establish a payment plan or pay off the debt. Ensure any payment is made according to IRS guidelines.
- Consider your options: If you believe you cannot pay the full amount, explore payment plans, offers in compromise, or other IRS debt relief options.
- Protect your personal information: Do not disclose sensitive information unless you have verified the legitimacy of the PCA contacting you.
Pro Tip
Consider paying the IRS directly instead of through the PCA if you prefer. You can do this by logging into your IRS account and making a payment. This ensures your funds go directly to the IRS and gives you a record of payment.
Potential consequences of ignoring IRS Notice CP40
Failing to respond to a CP40 notice can lead to serious consequences, including:
- Increased penalties and interest: Your tax debt will continue to accrue interest and penalties, making it more difficult to pay off over time.
- Collection actions: Although the PCA cannot take enforcement actions, continued non-payment could prompt the IRS to take further measures, such as levies or liens.
- Credit implications: While tax debts do not directly affect your credit score, unresolved tax liens may become public record, potentially impacting your financial standing.
Understanding your rights with private debt collection
When dealing with a private debt collection agency, it’s crucial to be aware of your rights as a taxpayer. The IRS ensures that taxpayer rights are protected under the Fair Debt Collection Practices Act (FDCPA). Here’s what you need to know:
- Prohibited practices: The PCA cannot use abusive or deceptive practices, and you have the right to report any violations.
- Disputing the debt: You can dispute the tax debt if you believe it is incorrect. The PCA must cease collection activities until the dispute is resolved.
- Payment options: You can negotiate a payment plan or settle the debt directly with the IRS if you prefer.
Handling disputes with the assigned private collection agency
If you disagree with the amount stated in the CP40 notice, you have the right to dispute the debt. Here are steps to take:
- Request verification: Ask the PCA for documentation supporting the debt amount.
- Contact the IRS: If you believe the debt is incorrect, contact the IRS directly to clarify your tax records.
- Seek professional advice: Consider consulting a tax professional to help resolve the dispute and negotiate with the IRS or PCA.
How to make payments on a CP40-related debt
If you decide to pay your tax debt after receiving IRS Notice CP40, there are several ways to make payments securely:
Pay directly to the IRS
You can choose to pay the IRS directly rather than the private debt collection agency. This method ensures your payment goes straight to your IRS account and is documented appropriately. Payments can be made online through the IRS website, by mail, or by phone. Using the IRS’s Electronic Federal Tax Payment System (EFTPS) or Direct Pay is the fastest and most secure method.
Set up a payment plan with the PCA
If paying in full is not feasible, the private debt collection agency can help you establish a payment plan. Make sure the terms align with what you can afford, as defaulting on an agreed plan can lead to further complications. Always confirm the legitimacy of the PCA before providing payment information.
Other IRS payment options
For taxpayers who cannot pay the full amount owed, other options such as an installment agreement or an offer in compromise might be available. These arrangements allow you to pay over time or settle the debt for less than the total amount owed, respectively. Discuss these options with the PCA or the IRS directly.
Protecting yourself from tax-related scams
Scams related to IRS notices and private debt collection are common, and it’s important to know how to protect yourself:
- Verify the notice: Always check the legitimacy of any IRS notice, especially if you receive unexpected communication about tax debts.
- Check the PCA’s information: Cross-reference the PCA’s contact details with the information provided in the CP40 notice. Call the IRS if anything seems unusual.
- Do not share sensitive information: Avoid providing personal information, such as your Social Security number, over the phone unless you are certain of the caller’s identity.
If you suspect a scam, report it to the Treasury Inspector General for Tax Administration (TIGTA) or the Federal Trade Commission (FTC).
IRS tax debt relief options and their benefits
If paying your tax debt is a challenge, there are several IRS debt relief programs that may help:
Installment agreements
An installment agreement allows you to make monthly payments on your tax debt. You can set up this plan with the IRS or through the PCA, depending on your situation. This option spreads the debt over a manageable period, making it easier to avoid default.
Offer in compromise
An offer in compromise lets you settle your tax debt for less than what you owe. The IRS considers your financial situation, including income, expenses, and asset equity, when deciding whether to accept an offer. This option may be beneficial if paying the full amount would cause significant financial hardship.
Currently not collectible status
If you can demonstrate that you cannot afford to pay your tax debt, you may qualify for currently not collectible (CNC) status. While in CNC status, the IRS will temporarily halt collection activities, although interest and penalties will still accrue on your outstanding balance.
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Frequently asked questions
What should I do if I believe the CP40 notice is incorrect?
If you think the CP40 notice is incorrect, contact the IRS immediately to verify the debt. You may need to provide documentation to prove that you do not owe the stated amount. You also have the right to dispute the debt with the private debt collection agency.
Can I avoid dealing with the private debt collection agency?
Yes, you can choose to pay the IRS directly if you prefer. The IRS accepts direct payments via its website or through other approved payment methods. This approach ensures that your payment goes straight to your IRS account.
What happens if I ignore IRS Notice CP40?
Ignoring the CP40 notice can lead to further penalties and interest accruing on your debt. While the PCA cannot take enforcement actions, the IRS may eventually initiate actions like tax liens or levies if the debt remains unresolved.
Will paying the tax debt improve my credit score?
Paying your tax debt does not directly affect your credit score, as tax debts are not reported to credit bureaus. However, resolving the debt can prevent tax liens from being filed, which can appear in public records and potentially impact your creditworthiness.
How can I confirm that I am dealing with a legitimate PCA?
Verify the PCA’s contact information using the details provided in the CP40 notice. The IRS website also lists authorized private debt collection agencies, which can help confirm whether the agency is legitimate. If in doubt, contact the IRS directly.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- IRS Notice CP40 notifies taxpayers that their tax debt has been assigned to a private debt collection agency.
- Responding promptly can help avoid additional penalties, interest, and further IRS actions.
- Verify the private debt collection agency’s information to ensure you’re dealing with a legitimate company.
- Payment plans and direct payments to the IRS are available to resolve the debt.
- Taxpayer rights are protected under the Fair Debt Collection Practices Act, ensuring fair treatment.
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