Mobility: What Does It Really Mean?
Traci Baker
What has become known as “mobility” is a topic of growing concern and great interest to CPAs nationwide. The issue was brought to the forefront when the state of California passed legislation called Practice Privilege regulations for out-of-state CPAs. The new rule, which went into effect January 1, 2006, required out-of-state licensees providing services for California clients, including preparing business or fiduciary tax returns, to file a California Practice Privilege Notification Form, and pay a $100 practice privilege fee.
While California was not the first state to have such rules on their books, they were the first to enforce state licensing regulations. This issue has become an increasingly critical concern for individual practitioners, small firms and large firms alike.
Because the Mobility issue has triggered confusion and concern among CPAs nationwide, the AICPA has created a special Mobility Tax Force that is reviewing the complexity of individual state regulations. The Tax Force will present its findings and recommendations sometime in early 2007. Currently, each state is being encouraged to do what four “model” states—Ohio, Wisconsin, Virginia and Missouri—have done: change their statutes to require no fee and no notification; yet make sure CPAs are eligible for discipline in states wherever they practice.
“In Arizona, we are in the early stages of exploring the impact of such a change to our state statutes,” said ASCPA President & CEO Cindie Hubiak. “Making these changes could take years, but a national effort is being made to change state statutes, help CPAs comply with existing state statutes and avoid unnecessary regulation and cost.”
For more information on Mobility, please visit The AICPA’s Web site section devoted to the issue: http://www.aicpa.org/Legislative+Activities+and+ state+licensing+Issues.
You will find specific state-by-state regulation information and other resources on this important topic, including a 98-page report that summarizes each state’s requirements. But many of the summaries (including Arizona’s) may not answer all of the questions, so the AICPA has also set up a special Mobility/State Licensing Issue Hotline at (800) 839-2715. Additional questions can be e-mailed to statelicensingquestions@aicpa.org. While the ASCPA may not be able to answer all your questions, please let us know if we can help you by contacting Cindie Hubiak at (602) 324-2888 or Adela Jiménez, the Society’s director of finance and administration, at (602) 324-2418.
Traci Baker is director of communications for the Arizona Society of CPAs.
AZ CPA – February 2007
