Before applying for a reciprocal license, note Kentucky has adopted the “incidental practice rule”. This means if you are
a licensed CPA in another state, you do not need a Kentucky license to offer accounting services to Kentucky-based clients as long as you meet the following requirements:
1. You have an active license in good standing in another state;
2. That state is considered to have licensing requirements substantially equivalent to those of Kentucky;
3. Currently you do not own an office located in Kentucky; and
4. You will not open an office in Kentucky without obtaining a reciprocal and firm license.
While you are not required to hold a license to practice you are still subject to the oversight and disciplinary process of the Kentucky Board of Accountancy as well as that of your home state board for any public accounting service you perform for a Kentucky based client.
KRS 325.301(11) states, “Nothing contained in this chapter shall require a certified public accountant or firm of certified
public accountants licensed by another state or foreign country to obtain a license to practice in this Commonwealth if the certified public accountant or firm of certified public accountants enter this Commonwealth solely to:
a. Conduct a peer review of a firm; or
b. Perform attestation work, incidental to an engagement which was initiated with a client located outside of
the Commonwealth and has extended into the Commonwealth due to common ownership or existence of a
subsidiary, assets, or other operations located within the Commonwealth.
To apply for a reciprocal license send the following documents to the Kentucky State Board of Accountancy:
· Check or money order in the amount of $100
· Authorization for Interstate Exchange of Information form. This form is for verifying that you passed the Uniform CPA Examination and that you have an active license in another state. Send the form to the state Board(s) of Accountancy where you are currently licensed and were an exam candidate. If it is the same state, only one form is necessary.
· Certificate of Experience showing a minimum of 1 year and 2,000 hours in an accounting or attest position. Complete the top portion of the form and send it to the CPA who will verify your experience. Your experience can be verified by any certified public accountant who, during the time being verified, held an active license to practice in any state. The experience must be within 5 years (before/after) of the date you passed your last exam.
If you can’t provide the certificate of experience for the required timeframe, you can
1. Have the licensing jurisdiction where you hold a valid and active
license send certified copies of experience requirement documents from the time you received that license
from your file; or
2. Submit documents which clearly reflect that you have practiced public accounting as a full-time profession for four (4) of the last ten (10) years with one of the following:
A. Proof of public accounting errors and omissions insurance
B. A letter from an attorney, client, or certified public accountant that has knowledge of the applicant's practice
C. Copies of firm license applications
D. Copies of personal tax returns
Once all forms are received, your application will be presented to the Board at their next regularly scheduled meeting.