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IRS CP40: Account Assigned to Private Collection Agency

Attention — severity 2/5

Straight answer: A CP40 tells you the IRS assigned your overdue account to one of its contracted private collection agencies. The notice includes a 10-digit authentication number you'll use to confirm the agency is legitimate.

Is there a deadline for a CP40?

No deadline, but the private agency will begin contacting you. You retain the right to work with the IRS instead.

What should I do right now?

  1. Keep the notice — the authentication number is how you verify callers and avoid scams.
  2. Know what private collectors CANNOT do: no levies, no liens, no enforcement — only payment arrangements.
  3. If you prefer, you can request your account be returned to the IRS, or set up your arrangement directly at IRS.gov.

The costly mistake people make with a CP40

Paying anyone who calls claiming to be a collector without exchanging authentication numbers. Payments only ever go to the U.S. Treasury — never to the agency itself.

Do I need professional help with a CP40?

Not needed for the assignment itself; consider help for the underlying debt if it's large.

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