July 14, 2020 at 10:49 pm #3050145NateParticipant
For the sake of confidentiality, I am not going to share what jurisdiction I got this information from, but assuredly, this is straight from the horse's mouth.
I'm in a bit of a predicament. I graduated a few years ago with a BSBA in accounting with 150 hours (changed majors several times, extra hours added up). Right now, I am an exam candidate for another jurisdiction (let's just say Jurisdiction B) that did not have a residency requirement and would let me sit with 120 hours, and more importantly, let me sit without having the 30 hours of upper-level accounting courses included in the 150 hours required JUST TO SIT in this other particular jurisdiction I want to be licensed in (Jurisdiction A). Now, having the 150 hours already and the 24 hours of upper-level accounting courses, it's sort of an insult to me that I couldn't even SIT for the exam in Jurisdiction A, but I digress.
So while I have been able to at least sit for the exam in Jurisdiction B, I can't be licensed there without these two upper-level accounting courses that make up the 30 hours of upper-level accounting courses required in the 150 hours. I had fully planned to take these two courses before the end of the year and transfer my exam scores from Jurisdiction B to Jurisdiction A upon passing all parts – that is, up until what I learned today from Jurisdiction A's public accountancy office. I only called them to see if these particular classes would be accepted by them as the requirement for the 6 hours of upper-level accounting courses I lacked. The advice I got was not to even take the courses and get licensed in a jurisdiction that didn't require them (let's call it Jurisdiction C – one that only requires 24 upper-level accounting courses and 150 hours) and to then apply for a reciprocal license in Jurisdiction A! So, basically, if you are with me here…. I could either pay $1100 to take these two particular classes I lack and have my scores transferred from Jurisdiction B to Jurisdiction A for licensure OR transfer my scores from Jurisdiction B to Jurisdiction C for licensure and just pay for a reciprocal license which is only $100 to be licensed in Jurisdiction A! So, essentially, when it all comes down to it, I'd be paying $125 for licensure in Jurisdiction C (score transfer fee plus application fee), then $100 for reciprocal license in Jurisdiction A. $225 vs $1100. Nearly $900 in savings!!!!
So what I plan to do is pass my remaining two exams, transfer my scores to Jurisdiction C, get licensed, then get a reciprocal license in Jurisdiction A. My question is… has anyone else done this? And also, how has this “loophole” not been noticed by the boards? I was so shocked she told me that information. She saved me $900. I get the feeling most state boards would not even think about it that way and would just tell you to take those extra courses.
In any case, loopholes people! They will save you money and time!July 14, 2020 at 11:48 pm #3050190Lucky88Participant
I believe it works. I am not accounting major so I chose the State which has least accounting course requirement and then transferred the CPA exam scores to another jurisdiction for licensure. Finally, I may get a reciprocal license in my home State.
Three requirements are the same among all those reciprocal States — education(150 credits) exams and
experience (at least one year verified by an active CPA).July 15, 2020 at 12:05 am #3050196monikerncParticipant
Why all the spy talk? Sit for exams wherever you qualify to do so, get licensed by a state whose requirements you meet, use reciprocity to get licensed in another state. It is how the system is setup to work thanks to substantial equivalency. Not a loophole.
All states have their own, and sometimes very unique requirements for exams, licenses, and reciprocity so you have to educate yourself on all of the rules for each state involved.
For me, I was a NC candidate and qualified and sat for exams under their rules. Moved to CO gained my experience but didn’t meet education requirements for an initial CO license and experience was not under direct supervision of CPA so NC was out. Got initial license from Montana where I have never lived or worked. Applied within weeks of getting initial license from Montana for a Colorado license through reciprocity and was approved. I am now licensed in two states. And all 3 states know it – plus NASBA helped with both licenses.
It is how the system works with these three states. If you can make it work for you with whatever states you are talking about, go for it. Then tell the world!July 15, 2020 at 3:57 pm #3050613ReckedParticipant
Loophole that's not really a loophole, which I wish I knew about 10 years ago.
You just need 150 hours, not necessarily a MBA or Masters. You can get the extra credits in NY from a community college, or any of the other various methods people use on this forum. You just need to be able to check the boxes for total credit hours, total accounting hours, and total business hours.
I missed the application deadline back in 2009 by about one month when NY went from the 120 hour requirement to the 150 hour. If I had just sent in the application with the check I would have been grandfathered in.
Live and learn!July 15, 2020 at 4:11 pm #3050622ReckedParticipant
NY still has a 15 year work rule.
If you have 15 years of work experience they require zero education, zero credits to sit and be licensed.
But that's also one of the reasons NY has a star next to it on any of the “substantially equivalent” state list for reciprocity with other states.July 15, 2020 at 5:00 pm #3050643JFKGYParticipant
I am not seeing how this would be a problem. As long as you get yourself a license in any of the 50 states, you can use it anywhere. In NYC, we have so many CPA licensed from NJ. The only thing that might prevent you from using it is certain public company rules (if applied), or if certain states required an extra ethic exam (like NJ).July 15, 2020 at 8:17 pm #3050772monikerncParticipant
@jfkgy you have to be licensed by NY to hold yourself out as a CPA in NY. This is true for all states and I don’t think there are any exceptions to this rule. Lots of people may do it but they are subject to fines if caught.