When the IRS Assigns Your Tax Debt to a Private Collector
The IRS uses private collection agencies for certain unpaid, inactive tax accounts. A letter or call from one of these companies can be legitimate. Before discussing a payment, confirm which agency has your account and complete the IRS verification process.
Verify the agency and the contact
The IRS first sends an assignment notice, such as Notice CP40 or Notice CP140, before the collection agency contacts you. The agency then sends its own confirmation letter before calling.
| Check | What to look for |
|---|---|
| The assigned agency | The company named in your IRS notice should appear on the IRS's current contractor list. |
| The two letters | The IRS notice and agency letter contain the same Taxpayer Authentication Number. |
| The phone conversation | You and the collector exchange portions of that number to verify each other's identity. |
Use the IRS contractor list to check the company and its contact information. A caller's claim to work for the IRS is not enough.
Payments go to the IRS
Make payments to the IRS, not to the collection company. The agency can explain payment options and may help arrange a payment plan. The IRS payment page provides official ways to pay.
A private collector cannot issue a levy, file a Notice of Federal Tax Lien, or decide to accept an offer to settle for less than you owe. Those decisions remain with the IRS. Requests for gift-card payments or threats of arrest are reasons to stop and verify the contact.
You can ask to work with the IRS instead
If you do not want to work with the assigned agency, submit that request in writing to the agency. The IRS collection FAQs explain the procedure. Returning an account to the IRS does not cancel the debt or remove the IRS's collection authority.
If the amount is wrong, already paid, or unaffordable, verify the balance and consider the available IRS resolution options before agreeing to payments.
You retain taxpayer rights during private collection. Report threats, misconduct, or suspected impersonation to the Treasury Inspector General for Tax Administration.