On October 14 the IRS announced that it would delay until further notice the renewal period for enrolled agents with social security numbers or tax identification numbers ending in 4, 5, or 6.

The IRS said in Announcement 2010-81 that since it is currently in the midst of implementing regulations related to its new tax preparer registration system, and the fees for enrolled agents are likely to be substantially reduced, it wants to make sure they are effective before the start of the next renewal period (187 DTR GG-1, 9/29/10).

The IRS has been promising to reduce fees for enrolled agents, who have bristled under the threat of additional charges.( Enrolled agents are a special category of practitioner licensed with the IRS to prepare returns. Since they already paid a fee to practice before the IRS prior the debut of the service's registration scheme, the service acknowledged they should pay less.)

All tax preparers will pay $50 to IRS and a separate $14.25 fee to register with the IRS. However, IRS officials have said informally that they would accommodate those charges at a later date.

Circular 230 requires that enrolled agents renew their enrollment every third year after they initially enroll in order to maintain active practice before the IRS.

An enrolled agent's renewal schedule is determined by the last digit of his or her Social Security or tax identification number, IRS explained.

The renewal schedules are staggered with approximately one-third of enrolled agents renewing every year, IRS said. The renewal period for enrolled agents whose numbers end in 4, 5, or 6 is scheduled to begin on Nov. 1 and end on Jan. 31, 2011.

The delay in renewals will not affect an enrolled agent's current status in good standing, IRS said. It also will not affect the number of continuing professional education hours required for renewal or the time period within which the hours have to be completed, IRS said.

When a date for the renewal period is determined, IRS said it will publish a schedule in Internal Revenue Bulletin and on the IRS Office of Professional Responsibility webpage.

The schedule will be published at least 30 days before the beginning of the revised enrollment period, IRS said. Affected agents will have at least 60 calendar days, but no more than 120 calendar days, under the revised renewal plan to submit the required Form 8554.

The announcement will appear in Internal Revenue Bulletin 2010-45, dated Nov. 8.