Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? CP40
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? We are notifying you that we’ve assigned your tax account to a private collection agency for collection.
- What should you do if you receive this notice?
- Read the notice carefully. It contains important information about what happens next. .
- File any unfiled tax returns that you’re required to file.
- Keep the CP40 notice for your records. You’ll need information from it to complete the two-party verification with the collection agency, explained below.
FAQs & Additional Information
- 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? Your CP40 notice contains the name and contact information of the private collection agency assigned to your account. The names of all the private collection agencies under contract with the IRS can be found on IRS.gov, keyword search “Private Debt Collection.” The private collection agency will also send you a letter confirming assignment of your tax account.
- Can I make arrangements to pay my taxes over time with the private collection agency? Yes, the private collection agency will work with you to set up a payment arrangement if you can’t full pay when contacted.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
- About the notice - https://www.irs.gov/individuals/understanding-your-cp40-notice
- Example copy of the notice - https://www.irs.gov/pub/notices/cp40.pdf
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
