Update on Out-of-state Licensing

I continue to get numerous inquiries about the status of out-of-state licensing regulations - most hoping that the issue will just go away. But the facts are still the facts!

NOTHING HAS CHANGED since the beginning of the year!!

If you follow two of the biggest states - California and Illinois - you will have a pretty good idea of where we are in the debate. In the past few days I have spoken with representatives of the boards of accountancy and the state CPA societies for each of these states.

Legislation has been proposed, but nothing has been passed.

California's law went into effect on January 1, 2006. Illinois' law goes into effect on October 1, 2006... and many more states have restrictions on the practice of public accountancy by out-of-state CPAs. See my chart at www.artberkowitz.com

While enforcement has been inconsistent, the fact remains that in many, many states, the practice of public accounting by unlicensed (or unregistered) out-of-state CPAs is a violation of the law.

Many CPAs have chosen the ostrich method of dealing with this issue. We prefer the direct approach - a national public debate on the advantages and disadvantages of restrictions to the interstate practice of accounting by CPAs.

We urge you to contact your congressmen, your state legislators, your state society, your state board of accountancy, NASBA, and the AICPA.