ST40 Notice: What Happens When the IRS Can’t Reach You
Summary:
The ST40 IRS Notice is sent to taxpayers when the IRS intends to contact third parties to verify or obtain additional contact information, especially for those with unfiled returns or unpaid taxes. This notice serves as a heads-up for taxpayers that the IRS is escalating their collection efforts by reaching out to third-party entities. It explains the purpose of the outreach, what information the IRS may disclose, and how long the IRS may continue these efforts. The notice also provides guidance on actions taxpayers can take to resolve any tax issues, including filing missing returns, paying outstanding balances, or seeking financial relief options.
Receiving an IRS notice can be an unsettling experience, and the ST40 IRS Notice is no exception. This notice alerts taxpayers that the IRS will be reaching out to third-party contacts, such as employers, banks, or even neighbors, to verify or collect your current contact information. This outreach occurs when the IRS is unable to reach you directly, usually due to unfiled tax returns or unpaid tax debts. While the notice itself may seem alarming, it is important to understand the steps you can take to address the issue and avoid further complications. In this article, we will break down the ST40 Notice, explain why it was issued, and provide practical advice on how to resolve the situation.
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.
Get Competing Personal Loan Offers In Minutes
Compare rates from multiple vetted lenders. Discover your lowest eligible rate.
It's quick, free and won’t hurt your credit score
What is the ST40 IRS Notice?
The ST40 IRS Notice is part of the IRS’s collection process, issued when the agency cannot contact a taxpayer directly regarding outstanding tax obligations. It informs the taxpayer that the IRS intends to reach out to third parties to gather or verify their current contact information. The third parties involved could be employers, financial institutions, or even personal acquaintances. The IRS takes this step to continue pursuing unfiled tax returns, unpaid balances, or any other unresolved tax issues.
Why is the IRS contacting third parties?
The IRS contacts third parties when their efforts to reach you directly have failed, often due to incorrect or outdated contact information. This could be the result of unfiled tax returns, failure to pay taxes, or simply because the IRS does not have updated records for your current location or contact details. When this happens, the ST40 notice serves as a notification that the IRS is taking steps to locate you through alternative means.
Pro Tip
Always keep copies of all correspondence with the IRS, including notices and your responses. This documentation can be vital for resolving disputes and tracking your communication history.
What should you do when you receive an ST40 IRS Notice?
If you receive an ST40 IRS Notice, it’s crucial to take prompt action to resolve your tax situation. Here’s what you need to do:
- Read the notice carefully: Understand the reason for the IRS’s action and the potential consequences of non-compliance.
- Review your tax records: Confirm that you have filed all necessary tax returns and paid any outstanding balances.
- Contact the IRS: If you believe there is an error or if you need clarification, contact the IRS directly at the number listed in your notice.
- Update your contact information: Ensure that the IRS has your most current mailing address and contact details to avoid future complications.
Filing missing returns or paying overdue taxes
If the ST40 IRS Notice is sent because you have unfiled tax returns or unpaid taxes, the next steps involve filing the necessary documents and settling your balance. Here’s what you need to know:
Filing missing returns
The IRS requires all taxpayers to file their returns for each tax year that income was earned. If you haven’t filed a tax return for any previous year, you should do so as soon as possible. Here’s how you can get started:
- Review your records: Check which tax years the IRS is missing returns for. This information is often included in the ST40 notice.
- Gather your documents: Collect W-2s, 1099s, and any other relevant tax documents from the year(s) in question.
- File your returns: Use IRS e-file or paper filing to submit your overdue returns. Include payment for any taxes due, if applicable.
Pro Tip
Consider consulting a tax professional if you’re unsure how to respond to an ST40 notice. They can provide personalized guidance and help you navigate complex tax situations.
Paying your overdue taxes
If the notice relates to unpaid taxes, you have several options to resolve the debt:
- Pay the full balance: You can make a one-time payment online or by mail to settle your debt.
- Set up a payment plan: If you cannot pay the full amount upfront, consider applying for an installment agreement using the IRS’s Online Payment Agreement tool.
- Offer in Compromise: Under certain circumstances, you may qualify for a settlement of your tax debt for less than the full amount owed. Use the IRS Offer in Compromise Pre-Qualifier tool to check your eligibility.
What if you cannot pay the full amount?
If you’re unable to pay the full amount listed on your notice, don’t panic. The IRS offers several options to help you manage your debt:
Installment plans
You may qualify for an installment agreement if you owe less than $50,000 in taxes. This allows you to make monthly payments over time to settle your tax debt. To apply, use the Online Payment Agreement tool or call the toll-free number provided in your ST40 notice.
Offer in Compromise
For taxpayers experiencing significant financial hardship, an Offer in Compromise (OIC) could be a viable option. This program allows taxpayers to settle their tax debt for less than the full amount they owe, but qualifying can be difficult. Use the IRS’s OIC Pre-Qualifier tool to see if you’re eligible.
Currently Not Collectible status
If you are facing severe financial difficulties and cannot make any payments toward your tax debt, you may be able to request that the IRS mark your account as “Currently Not Collectible.” This does not eliminate the debt, but it delays collection efforts until your financial situation improves.
Consequences of Ignoring the ST40 IRS Notice
Ignoring the ST40 IRS Notice can lead to several significant consequences that may complicate your financial situation. Here are some of the potential repercussions:
- Escalating Collection Actions: If you fail to respond, the IRS may escalate their collection efforts, which can include contacting third parties to gather more information about your financial situation or whereabouts.
- Increased Penalties and Interest: The longer you delay in addressing your tax obligations, the more penalties and interest may accumulate on your unpaid balance, making it more difficult to resolve the issue later.
- Tax Liens and Levies: In severe cases, ignoring the notice may lead the IRS to place a lien on your property or garnish your wages, severely impacting your financial stability.
- Loss of Tax Refunds: Any future tax refunds may be withheld until you address the outstanding balance, causing delays in receiving funds that you may depend on.
Pro Tip
Use the IRS’s Online Payment Agreement tool to set up a payment plan quickly if you owe taxes. This tool makes it easier to manage your debt and avoid penalties.
Seeking Professional Help
If you find yourself overwhelmed by the implications of the ST40 IRS Notice or if you’re unsure how to proceed, seeking professional help can be beneficial. Here are some options to consider:
- Tax Professionals: Consulting a certified public accountant (CPA) or a tax attorney can provide you with expert guidance tailored to your specific situation. They can help you understand your rights and responsibilities, as well as develop a plan to address the notice.
- Enrolled Agents:Enrolled agents are licensed by the IRS to represent taxpayers. They can assist you in negotiations with the IRS and help resolve your tax issues more efficiently.
- Tax Resolution Services: If you’re facing serious tax debt issues, consider hiring a reputable tax resolution service. These companies specialize in helping taxpayers negotiate with the IRS and can assist in setting up payment plans or offers in compromise.
- Community Resources: Various community organizations and non-profits provide free or low-cost tax assistance. These resources can be valuable, especially for individuals with limited income or complex tax situations.
Remember, taking action is crucial. Addressing the ST40 IRS Notice promptly can prevent further complications and help you regain control of your tax situation.
Looking for the best way to reduce your tax burden? We’ve compiled a list of the Best Tax Relief Companies to help you navigate tax challenges and save money. Click here to discover trusted experts who can assist you with tax resolution, IRS negotiations, and more!
Frequently asked questions
What should I do if I don’t recognize the ST40 notice?
If you receive an ST40 notice and do not recognize it, first verify that it is legitimate by checking the IRS’s official website or calling the IRS directly. Be cautious of phishing scams and ensure that the notice contains accurate information related to your tax account.
How can I check the status of my tax returns with the IRS?
You can check the status of your tax returns by using the IRS’s “Where’s My Refund?” tool available on their website. This tool allows you to track the progress of your refund or see if your tax return has been processed.
What happens if I ignore the ST40 notice?
Ignoring the ST40 notice can lead to serious consequences, including ongoing collection actions by the IRS. This may result in additional penalties, interest charges, and potential enforcement actions such as wage garnishments or liens on your property.
Can I dispute the information provided by the IRS in the ST40 notice?
Yes, if you believe the information in the ST40 notice is incorrect, you can dispute it by providing the IRS with documentation that supports your case. Contact the IRS as soon as possible to discuss your concerns and follow the instructions on how to submit your dispute.
Is there a time limit to respond to the ST40 notice?
Yes, there is typically a time limit to respond to the ST40 notice, which is usually specified in the notice itself. It is important to act quickly to avoid further complications or penalties related to your tax obligations.
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
- The ST40 IRS Notice indicates that the IRS is reaching out to third parties to gather or verify your contact information.
- This notice is often issued due to unfiled returns or unpaid tax debts.
- You should act promptly by filing missing returns, paying your balance, or setting up a payment plan to avoid further penalties.
- If you’re facing financial difficulties, the IRS offers payment plans and financial relief programs such as Currently Not Collectible status or Offer in Compromise.
Share this post:
Table of Contents