Your account was assigned to a private collection agency
- What it is
- Your account was assigned to a private collection agency
- Type
- Balance and collection
- Your deadline
- The IRS page gives no fixed window. Go by the date printed on your letter.
- The IRS says the agency "will never ask you to pay them directly." Make all payments to the IRS.
- To
- You
- From
- Blaga Veleva, EA
The IRS assigned your unpaid balance to a private collection agency, and this notice names the agency. The agency will also send its own letter. Both letters carry a taxpayer authentication number, so you can check that a caller is real. Payments still go to the IRS, never to the agency.
What happens if this letter waits?
Per irs.gov: the private collection agency "will work with you to set up a payment plan if you can't full pay when contacted." Private collection agencies "cannot take any type of enforcement action," but the IRS still can file a lien or issue a levy.
How can an Enrolled Agent help with it?
- Confirm the CP40 and the agency letter are genuine, using your IRS account transcript and the authentication number.
- Speak to the agency or the IRS for you under a power of attorney (Form 2848).
- Compare the agency's payment plan with other IRS options, such as an installment agreement or an offer in compromise.
- If you want to stop working with the agency, help you send that request in writing to the agency, as the IRS directs.
Blaga Veleva, EA can read your letter with you in a free consultation. See also IRS help.
Not in the decoder yet. Read it to us.
Call (281) 785-0460 Send it to us
That does not mean it is unusual. The IRS sends many different notices and letters. Read us the number and the date printed on it, and Blaga will tell you what it is and what it asks you to do.
Check the letters before the number too (CP, LT or Letter), in the top right corner. See every letter in the decoder.
Type the number from the top right corner of your letter, for example CP504 or LTR 1058. No number? Try a word like levy, lien or audit.
Which one is it?
Look at the letters printed just before the number, top right of the first page.
Still not sure? Call (281) 785-0460 and read it to us.
Which letter is it?
The number is in the top right corner of the first page, for example CP14 or LTR 1058. Type it above, tap a common one below, or see every letter the decoder covers.
- What it means
- Your deadline
- If it waits
- How an Enrolled Agent can help
Have Blaga read yours Full guide
Source: irs.gov. This is a plain-English summary, not advice on your case.