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.