CPA Out-of-state licensing

Sunday, February 26, 2006

Update to Excel spreadsheet

I have updated the excel spreadsheet (updated to 2/24/2006) showing the rules for out-of-state licensing in all 50 fifty states.

Go to The link is on the home page.

If you are still seeing the old spreadsheet (dated 12/13/2005), you may need to clear your cache. First try pushing F5 on your computer to refresh the page. If that does not work, there are instructions on how to clear your cache at:

Thursday, February 23, 2006

The Tide has Definitely Turned

California's restrictions on out-of-state licensing are about to change - and for the better. (It's not yet law so you might want to stay tuned.)

The California Board of Accountancy will be seeking a legislative change to restore a form of "temporary and incidental practice." In addition, the proposal will exempt the preparation of all tax returns from the practice prvilege laws that went into effect on January 1, 2006. On that date, California became the only state to have different licensing rules for the preparation of individual and business tax returns. Also, out-of-state CPA firms will not have to be registered in California in order for the individual CPA to prepare the tax return.

Remember that the recommendations of the California Board of Accountancy must still go through the legislative process and a lot can change.

But the big news is that the people have spoken and the tide has definitely turned. The assumption that the public is better served by more and more restrictions on practitioners rights to practice is up for debate.

Thank you all for your E-mails, letters, telephone calls, and faxes.The AICPA, state CPA societies, governmental regulators and legislators are now listening to what you have to say.

So let's not stop here. We need to resolve the issue of out-of-state licensing across the country.

Thursday, February 09, 2006


In response to an inquiry from a California CPA to the Georgia Secretary of State, the Georgia Board of Accountancy has ruled that their out-of-state licensing rules no longer apply to tax returns (either individual or business).

A new trend has begun. We have to keep up the pressure.

Please contact the California Board of Accountancy and any California legislators you know. Tell them that the rules on practice privilege must change.

Tuesday, February 07, 2006

California's Practice Privilege Being Challenged

For all those practitioners who have been struggling trying to comply with the various state rules on out-of-state licensing, good news may be on the way.

The California Society of CPAs has reversed its position on California's out-of-state licensing rules and has asked the California Board of Accountancy to reconsider its position and hold a “thorough discussion of all issues” during a meeting on February 22nd and 23rd in Sacramento.

We feel that it is imperative for you to join in this discussion!

Please send your thoughts and correspondence to the California Board of Accountancy, 2000 Evergreen Street, Suite 250, Sacramento, CA 95815. You may also want to copy Bruce Allen, CalCPA, Director of Government Relations, 1201 "K" Street, Ste. 1000, Sacramento, CA 95814-3922.

From the beginning of the push toward restrictions on out-of-state licensing, this website has called for a full and open public debate on the merits of these rules as a way to protect the public.

Most state CPA societies ignored the obvious implications of higher costs and complexity to small and midsized CPA firms without a corresponding benefit to the public. There were just a few of us who asked questions that were never answered.

We knew that eventually the problems associated with 54 jurisdictions each having their own rules to limit the practice of public accounting was not in the best interest of the public.

Now is the time for CPAs from across the state and throughout the country to speak out and have their voices heard.

Art Berkowitz, CPA