IRS Publication 4518 – If you’ve received IRS Notice CP40 or a letter from a private collection agency (PCA) about an overdue tax debt, you’re not alone. Thousands of taxpayers are assigned to the IRS private debt collection program each year. IRS Publication 4518 — officially titled What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency — is the IRS’s primary guide explaining the entire process, your rights, and what happens next.
Download the official IRS Publication 4518 PDF here: https://www.irs.gov/pub/irs-pdf/p4518.pdf (last revised November 2019, still the authoritative document as of February 2026).
This comprehensive guide breaks down everything in plain language so you can act confidently and protect your rights.
Why Does the IRS Assign Accounts to Private Collection Agencies?
Congress passed the Fixing America’s Surface Transportation (FAST) Act in 2015, requiring the IRS to use private collection agencies for certain older, inactive tax debts. The IRS simply does not have enough resources to actively work every overdue account.
Publication 4518 clearly states: The IRS assigns accounts that are overdue and inactive — typically when the agency lacks current contact or resources to pursue collection directly. These are not new audits or high-priority cases under active examination.
Important exclusions (accounts NOT assigned to PCAs):
- Taxpayers who are deceased, under 18, in combat zones, or receiving SSI/SSDI
- Adjusted gross income ≤ 200% of the federal poverty level
- Accounts in examination, litigation, criminal investigation, levy, offer in compromise, installment agreement, innocent spouse relief, or disaster relief
The Assignment Process: What Happens Step-by-Step
- IRS sends Notice CP40 — This official letter notifies you that your account has been assigned to a PCA and includes a unique 10-digit Taxpayer Authentication Number.
- PCA sends a confirmation letter — It contains the same authentication number.
- PCA contacts you — Usually by phone after the letters arrive. They must identify themselves as an IRS contractor collecting federal taxes.
Pro tip from IRS Publication 4518: Keep both letters in a safe place. The PCA will use the authentication number to verify your identity before discussing your account.
Current IRS-Approved Private Collection Agencies (2026)
Effective September 23, 2021, only these three agencies handle new assignments (updated information from IRS.gov as of February 2026):
- CBE Group Inc.
P.O. Box 2217, Waterloo, IA 50704
Phone: 800-910-5837
Website: cbegroup.com/irs - Coast Professional, Inc.
P.O. Box 425, Geneseo, NY 14454
Phone: 888-928-0510
Website: coastprofessional.com - ConServe
P.O. Box 307, Fairport, NY 14450
Phone: 844-853-4875
Website: conserve-arm.com
Note: Prior to September 2021, Performant and Pioneer were also used, but they are no longer under contract for new assignments.
What the Private Collection Agency Can Do?
According to IRS Publication 4518 and the current IRS private debt collection page:
- Contact you by phone and mail to resolve the account
- Explain all available payment options and help set up a payment plan (full payment within the Collection Statute Expiration Date, usually 10 years)
- Monitor your payment arrangement
- Answer questions about your balance (after proper authentication)
PCAs must treat you courteously and follow the same taxpayer rights standards as IRS employees.
What the Private Collection Agency CANNOT Do?
Publication 4518 is very clear on protections:
- Cannot request payment directly to them (all payments go to the IRS)
- Cannot ask for payment via prepaid debit cards, gift cards, iTunes cards, or wire transfers
- Cannot take enforcement actions (no federal tax liens or levies — only the IRS can do that)
- Cannot determine eligibility for offers in compromise or currently not collectible status
- Cannot threaten, harass, or intimidate you (they must follow the Fair Debt Collection Practices Act)
If you prefer not to work with the assigned PCA, simply send a written request to the agency, and they must stop contacting you (the account returns to the IRS).
How to Make Payments Safely?
All payments must be made directly to the IRS — never to the PCA.
Approved methods (detailed in Publication 4518 and Publication 594):
- IRS Direct Pay (free from checking/savings)
- Electronic Federal Tax Payment System (EFTPS) — free online or phone
- Preauthorized Direct Debit (PCA can help set it up, but you control it)
- Debit/credit card (convenience fee applies)
- Check or money order payable to “United States Treasury”
Include your name, SSN, tax year, and form number on the payment.
Your Rights and Where to Get Help?
Publication 4518 emphasizes:
- You have full Taxpayer Bill of Rights protections
- Right to representation (enrolled agent, CPA, attorney, or Low Income Taxpayer Clinic)
- Right to privacy and confidentiality
Key free resources:
- Publication 1: Your Rights as a Taxpayer
- Publication 594: The IRS Collection Process
- Taxpayer Advocate Service: 1-877-777-4778 or taxpayeradvocate.irs.gov
- Low Income Taxpayer Clinics (Publication 4134)
- Treasury Inspector General for Tax Administration (TIGTA) for complaints: 1-800-366-4484 or tigta.gov
How to Report Problems or Suspected Scams?
If a caller claims to be from an IRS PCA but:
- Asks for immediate payment by gift card or wire
- Won’t provide the authentication number
- Threatens arrest or immediate levy
Report immediately to TIGTA at 1-800-366-4484 or tigta.gov. The IRS never demands instant payment this way.
Frequently Asked Questions About IRS Publication 4518 and PCAs
Q: Is Publication 4518 still current in 2026?
A: Yes. The November 2019 revision remains the official IRS publication. Agency contact details and program procedures are maintained on IRS.gov.
Q: Can the PCA garnish my wages or seize my bank account?
A: No. Only the IRS can take enforcement action. PCAs only negotiate voluntary resolutions.
Q: What if I already paid the balance?
A: Provide payment details to the PCA. They will research and credit it properly.
Q: How do I verify the call is legitimate?
A: Use the 10-digit authentication number from your CP40 and PCA letter. You can also check your account transcript at IRS.gov for the referral code.
Final Advice: Act Quickly and Stay Protected
Receiving a PCA assignment notice can feel stressful, but IRS Publication 4518 exists to empower you with clear information and strong protections. Review the letters carefully, verify the caller, explore payment options, and contact the PCA or IRS promptly to resolve the matter.
For the most up-to-date details, always visit the official IRS private debt collection page: irs.gov/privatedebtcollection.
Sources: IRS Publication 4518 (Rev. Nov. 2019), IRS Private Debt Collection page (updated August 20, 2025), Private Debt Collection FAQs (reviewed February 18, 2026), and related IRS publications. All information is taken directly from official IRS.gov resources.
Stay informed, protect your rights, and resolve your tax debt on your terms. If you need personalized help, reach out to the Taxpayer Advocate Service or a qualified tax professional.