Out-of-State Individual Practice Privilege

Rules for Out-of-State License Holders

Legislation effective September 1, 2007 created a “practice privilege” for CPAs and CPA firms licensed in a substantially equivalent state to temporarily practice in Texas without a Texas license. CPAs that qualify for the “practice privilege” are not required to provide notice to the Texas State Board of Public Accountancy (the “Board”) or to pay a fee prior to practicing public accountancy in Texas in person or by mail, telephone or electronic means.

Individual Requirements Checklist

If you are an out-of-state practitioner, use the following checklist of requirements to determine your eligibility to practice in Texas without notice to the Board. To qualify, you must be able to answer “Yes” to ALL requirements:

1. I hold a license as a certified public accountant issued by a state other than Texas.
2. My principal place of business is in a state other than Texas.
3. The National Association of State Boards of Accountancy’s (NASBA) National Qualification Appraisal Service has verified that the state where I am licensed has education, examination, and experience requirements for certification or licensure that are comparable to or exceed the requirements for licensure as a certified public accountant of the American Institute of Certified Public Accountants (AICPA)/National Association of State Boards of Accountancy Uniform Accountancy Act.
   OR
   I have obtained from NASBA’s National Qualification Appraisal Service verification that my education, examination, and experience qualifications are comparable or exceed the requirements for licensure as a certified public accountant of the American Institute of Certified Public Accountants (AICPA)/National Association of State Boards of Accountancy Uniform Accountancy Act.

If you meet all the requirements in the Individual Requirements Checklist you may practice public accountancy in Texas without notifying the Board, but you must also be aware of the following conditions of your privilege to practice in Texas:

• is subject to the personal and subject matter jurisdiction and disciplinary authority of the Board;
• must comply with The Public Accountancy Act and the Rules of the Board;
• results in the appointment of the state that issued your license as the agent on whom process may be served in any action or proceeding by the Board against you;
• ends if your certificate or registration is no longer valid. You must immediately cease offering services or rendering professional services in Texas.