IRS Notice LT39: Private Debt Collector Assignment Notice

IRS Letter LT39 notifies you that the IRS has transferred your tax account to an IRS-authorized private collection agency (PCA), which will now contact you to collect the debt.

What LT39 Means

In 2017, Congress required the IRS to use private collection agencies (PCAs) for certain categories of tax debt that the IRS itself is not actively working. LT39 is the official IRS notification that your account is one of those cases. Shortly after receiving LT39, you will receive a separate letter from the assigned private collection agency.

The IRS uses a small number of IRS-authorized PCAs — currently including CBE Group, Conserve, and Pioneer Credit Recovery, among others. The list of active contractors changes with IRS contract cycles; verify the current list at irs.gov/businesses/small-businesses-self-employed/private-debt-collection. These are legitimate, IRS-authorized collectors — not scammers. However, because tax scams impersonating the IRS are common, it is important to verify who is contacting you before providing any financial information or making payments.

Your debt is still owed to the IRS — you pay the IRS, not the private collector. The private collector cannot take enforcement action (levy or lien) on their own — only the IRS can do that.

Why You Received This Notice

Your account was assigned to a PCA because:

• Your tax debt meets IRS criteria for private collection (typically older debts or debts the IRS has not actively pursued)
• The IRS’s own collection resources are allocated elsewhere
• Congress mandated the IRS use PCAs for qualifying accounts

Common account types assigned to PCAs include accounts that have been inactive in IRS collections for a period of time and individual (not business) tax debts.

Key Deadline and Consequences of Ignoring

There is no hard deadline printed on LT39, but ignoring private collector contact has consequences:

• The private collector will make multiple contact attempts by phone and mail
• Unresolved accounts can be returned to the IRS, which may then pursue enforcement action including liens and levies
• Interest and failure-to-pay penalties continue to accrue on your balance throughout the PCA assignment
• Continued non-response may eventually lead to the IRS resuming direct enforcement

What to Do — Step by Step

1. Verify the PCA letter is legitimate. The IRS will send you LT39 first. The PCA letter will come afterward. If someone contacts you before you receive LT39, it may be a scam. Hang up and call the IRS directly at 1-800-829-1040 to verify.
2. Do not give personal financial information to anyone until verified. Legitimate PCAs will have an IRS-provided taxpayer authentication number on their letter.
3. Contact the IRS directly if you prefer. You do not have to deal with the private collector. You can contact the IRS directly to set up a payment plan, request hardship status, or explore other options. Tell the IRS you received LT39.
4. Set up a payment plan. The fastest way to end PCA contact is to resolve the underlying debt. Call the IRS or use IRS.gov to set up an installment agreement.
5. Opt out of PCA contact if you qualify. Victims of tax-related identity theft and taxpayers in bankruptcy may request removal from the PCA program. Deceased taxpayers’ estates and taxpayers under 18 are also excluded.
6. Document all communications. Keep records of every letter and phone call from the PCA, including dates, names, and what was discussed.

Your Rights

You have the right to:

• Verify the identity and IRS authorization of any private collection agency before providing information
• Opt out of PCA contact by notifying the IRS that you do not want your account handled by a PCA (the account returns to the IRS)
• Make all payments directly to the IRS — never to the private collector
• Set up a payment plan with the IRS at any time to resolve the debt
• File a complaint with the IRS or Consumer Financial Protection Bureau if a PCA engages in abusive or deceptive practices
• Seek assistance from the Taxpayer Advocate Service or a Low Income Taxpayer Clinic (LITC)

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