CPA License Reciprocity by State

All states specifically have their policies concerning international and interstate license reciprocity.

Let’s dig into what reciprocity means.

What we will cover?

What Is CPA License Reciprocity?

License Reciprocity means the recognition of a license issued by a state by another state. It means that such license holders will be permitted to apply for another state license without taking a uniform CPA exam in that state.

It simply means that CPA reciprocity permits accountants to move between states and work without applying for multiple licenses.

However, it is also a mutual agreement between US states and jurisdiction that each state will give regard to and honor another state’s license.

Interstate CPA License Reciprocity

Interstate CPA License Reciprocity, also known as CPA mobility, implies an agreement between states to accept another state’s CPA license without requiring the accountant to apply for a local license.

Requirements That Guarantee Interstate CPA License Reciprocity:

The CPAs must have passed the four sections of the CPA exam within 18 months with at least a 75% mark in each section.
They have met the education requirements of the issuing state.
They have met the state’s age requirement.
They have met the citizenship requirements of the state
They have met the work experience of the state and course requirements or work ethics
The license must be up-to-date and be on good terms.

How To Apply For Interstate CPA License Reciprocity

To be granted interstate CPA license reciprocity, you must have your home state license in good terms and conditions. It must not have any record of indiscipline. Furthermore, applying for an interstate CPA reciprocity license starts with the submission of documentation such as an educational transcript, proof of license, work experience verification, and the receipt of some fees paid.

If the application of reciprocity is submitted, it will be then reviewed by the state boards of accountancy. If approved, you will be awarded the position of public accountant in the new state.

International License Reciprocity

This is a legal arrangement between two or more countries, and each country will accept the other country’s certified public accountants’ qualifications or requirements.

This allows the CPAs to practice their job in another country without applying for new licensing procedures.

It should be noted that the country that will accept or recognize the International license reciprocity of the country that is a member of the MRA (Mutual Recognition Agreement) issuing bodies.

Factors That Guarantee International License Reciprocity

The country board must be part of the MRA (Mutual Recognition Agreement) body.
That country also must grant similar reciprocity for the license holder from the issuing state.
They must have passed the IQEX exam.

Moreover, the IQEX exam is for license holders from MRA-issuing organizations or bodies.

Obtaining International license reciprocity requires passing an exam or providing proof of extensive experience in the accounting profession.

Moreover, the candidate must pay the examination and application fees to process the application.

However, when the application is approved, CPAs can lawfully practice the accounting profession in the host country, but this doesn’t mean you should leave your license, maintain it, or keep it.

Requirements For Reciprocal CPA License

Each state has its particular requirements. Most states can only offer reciprocal licenses to CPAs who have met the below requirements.

– Master’s degree

– 150 college credit hours

– Work Experience

– Pass the CPA exam

– Ethics Exam

But if you have a CPA license in one state, knowing you have met all the above requirements is a joy.

How To Apply For A Reciprocal CPA License

Provide the certificate for either the IQEX or the Uniform CPA exam.
Submit your official transcript of the universities or colleges you attended directly to the boards
Provide your recent passport
Provide license transferable documents to the board to provide your license as valid and up-to-date
Submit an official copy of the form of identification
Provide three testimonies of good conduct written from non-relatives or family members
Apply and pay all fees.

How Much Does A Reciprocal License Cost?

There is no precise cost for the reciprocal license because the cost varies with the country’s rules and regulations.

The average reciprocal cost is $500, which differs from the others.

The main reciprocal CPA license fees to be paid:

– Application fee

– Examination fee

– Continuing Education cost

– License insurance fee

– Transcript evaluation fee

When Should I Apply For A Reciprocal License?

You can be eligible to apply for a reciprocal license when you make the state your primary place of business and residence.

If you acquire a reciprocal license, you will have to renew it according to the rules of the state’s regular CPA license holder.

This did not exclude fulfilling the state’s CPE and ethics requirements. You will also have to pay the renewal fee consecutively.

These are other factors that can determine when you should apply for CPA license reciprocity:

Suppose you are in urgency to practice your profession in another state. This may lead you to process your license application immediately.

Migration: If you want to relocate to another state, you will start processing your license application form so that you can continue your profession in your new state.

Examination Requirements: some states can decide that you need to pass an examination before your license gets approved. In this case, you must start earlier to meet the requirements.

Career goal: If you want to start a new and long-lasting profession in a new state, you will need to start the process now to complete it on time and avoid wasting time. Some state requirements might be somehow complicated.

In conclusion, you have to consider the requirements of the hosting state before you consider a reciprocal license. Also, you will need to keep your CPE credit in the state or country you want to hold reciprocity.

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