References
are to North Carolina Administrative Code, Title 21 - Occupational Licensing
Boards, Chapter 08 - Board of Certified Public Accountant Examiners.
CHAPTER 08 - BOARD OF
CERTIFIED PUBLIC ACCOUNTANT EXAMINERS
SUBCHAPTER 08J -
RENEWALS AND REGISTRATIONS
08J .0101 ANNUAL RENEWAL OF
CERTIFICATE, FORFEITURE, AND REAPPLICATION
(a) All active CPAs shall renew their
certificates annually by the first day of July.
The fee for such renewal is the maximum amount allowed by statute.
(b) To renew a certificate a CPA shall submit to
the Board:
(1) a completed
certificate renewal application form;
(2) a completed CPE report, as required by 21 NCAC 08G .0406(a);
and
(3) the annual
renewal fee.
(c) Upon failure of a CPA to comply with any
applicable part of Paragraph (b) of this Rule by July 1, the Board shall send
notice of such failure in the form of a demand letter to the CPA at the most
recent mailing address the Board has on file. Completed renewal application
packages shall be postmarked with proper postage not later than 30 days after
the mailing date of the demand letter, unless that date falls on a weekend, in
which case the renewal package must be postmarked or received in the Board
office on the next business day. For
renewal packages sent via the U.S. Postal Service, only a U.S. Postal Service
cancellation shall be considered as the postmark. If the renewal package is sent to the Board
office via a private delivery service, the date the package is received by the
delivery service shall be considered as the postmark. Subsequent failure of the CPA to comply with
any applicable part of Paragraph (b) of this Rule within 30 days after such
notice is mailed automatically results in forfeiture of the CPA's certificate,
as required by G.S. 93-12(15).
(d) Upon forfeiture of a certificate, the
certificate holder is no longer a CPA and the Board shall send notice of such
forfeiture to the certificate holder by certified mail to the most recent
mailing address the Board has on file.
The certificate holder shall return the certificate to the Board office
within 15 days after receipt of notice of forfeiture or, if the certificate has
been destroyed or lost, shall submit an affidavit, on a form supplied by the
Board, within 15 days of receipt of such notice that the certificate has been
destroyed or has been lost and shall be returned to the Board if found.
(e) A person who has forfeited a certificate
pursuant to G.S. 93-12(15) for failure to renew his or her certificate may
apply for reissuance under 21 NCAC 08J .0106.
(f) If a check or credit card authorization for
the annual renewal fee fails to clear the bank, the annual renewal shall be
deemed incomplete and returned.
(g) Any active CPA serving in the armed forces of
the United States and to whom an extension of time to
file a tax return is granted pursuant to G.S. 105-249.2, is granted the same
extension of time to comply with the requirements of Paragraphs (a) and (b) of
this Rule.
08J .0105 RETIRED AND INACTIVE STATUS: CHANGE OF STATUS
(a) A CPA may apply to the Board for change of
status to retired status or inactive status provided the CPA meets the
description of the appropriate status as defined in 21 NCAC 08A .0301. Application for any status change may be made
on the annual certificate renewal form or another form provided by the Board.
(b) A CPA who does not meet the description of
inactive or retired as defined in 21 NCAC 08A .0301 may not be or remain on
inactive or retired status.
(c) A CPA on retired status may change to active
status by:
(1) paying the
certificate renewal fee for the license year in which the application for
change of status is received;
(2) furnishing the
Board with evidence of satisfactory completion of 40 hours of acceptable CPE
courses during the 12-month period immediately preceding the application for
change of status. Eight of the required
hours must be credits derived from a course or examination in North Carolina
accountancy statutes and rules (including the Code of Professional Ethics and
Conduct contained therein) as set forth in 21 NCAC 08G .0401(a); and
(3) three
certificates of moral character and endorsements as to the eligibility signed
by CPAs holding valid certificates granted by any state or territory of the
United States or the District of Columbia.
(d) A CPA on retired status may request change to
inactive status by application to the Board.
(e) Any individual on inactive status may change
to active status by complying with the requirements of 21 NCAC 08J .0106(c).
08J .0106 FORFEITURE OR INACTIVATION OF
CERTIFICATE AND REISSUANCE OR REINSTATEMENT
(a) A certificate holder who determines that the
certificate of qualification issued by the Board is no longer needed or desired
may request inactive status by application to the Board.
(b) A person who is inactive or has forfeited a
certificate is no longer a CPA and thus is not subject to the renewal fee or
CPE requirements contained in these Rules.
(c) A person who desires to reinstate an inactive
certificate or reissue a forfeited certificate shall make application and
provide the following to the Board:
(1) payment of the
current certificate application fee;
(2) three certificates of moral character
and endorsements as to eligibility signed by CPAs holding valid certificates
granted by any state or territory of the United States or the District of
Columbia; and
(3) evidence of
satisfactory completion of the CPE requirement described in 21 NCAC 08J
.0105(c)(2).
(d) The certificate may be reinstated or reissued
if determined by the Board that the person meets the requirements as listed in
Paragraph (c) of this Rule.
08J .0107 MAILING ADDRESSES OF
CERTIFICATE HOLDERS AND CPA FIRMS
All
certificate holders and CPA firms shall notify the Board in writing within 30
days of any change in address or business location.
08J .0108 CPA FIRM REGISTRATION
(a) All CPA firms shall register with the Board
within 30 days after opening a North Carolina office or beginning a new CPA
firm unless they are a professional corporation, professional limited liability
company, or registered limited liability partnership, in which case they shall
register prior to formation pursuant to 21 NCAC 08K .0104 and .0301.
(b) In addition to the registration required by
Paragraph (a) of this Rule, all CPA firms shall renew annually by January 31
with the Board upon forms provided by the Board.
(c) The information provided by the registration
shall include:
(1) Either an application for exemption from
peer review, a request to be deemed in compliance with peer review or
registration for peer review, pursuant to 21 NCAC 08M .0105;
(2) For all CPA firms not exempt from the
peer review program, with the registration immediately following its review,
the information required by 21 NCAC 08M .0106(a);
(3) For all North Carolina offices, an
office registration form indicating the name of the office supervisor, the
location of the office and its telephone number;
(4) For all partnerships or registered
limited liability partnerships, a list of all resident and nonresident partners
of the partnership;
(5) For all professional limited liability
companies, the information set forth in 21 NCAC 08K .0104(d);
(6) For all incorporated CPA firms, the
information set forth in 21 NCAC 08K .0104(d);
(7) For all CPA firms, the appropriate
registration fees as set forth in 21 NCAC 08J .0110; and
(8) For all new CPA firms, the percentage of
ownership held individually by each non-CPA owner who has five percent or more
of ownership:
(A) in the new CPA
firm; and
(B) at the year-end
in each CPA firm in which that owner was an owner during the preceding two
years.
(9) For all changes in ownership of a CPA
firm, the percentage of ownership held individually by each owner who has five
percent or more of ownership.
(d) All information provided for registration
with the Board shall pertain to events of and action taken during the year
preceding the year of registration. The
last day of the preceding calendar year is the "year end."
(e) With regard to Paragraph (c)(3)
of this Rule, one representative of a CPA firm may file all documents with the
Board on behalf of the CPA firm's offices in North Carolina. However, responsibility for compliance with
this Rule remains with each office supervisor.
(f) With regard to Paragraph (c)(4) or (c)(5) of
this Rule, one annual listing by a representative of the partnership,
registered limited liability partnership, or professional limited liability
company shall satisfy the requirement for all owners of the CPA firm. However, each owner remains responsible for
compliance with this Rule. The absence
of a filing under Paragraph (c)(4) or (c)(5) of this
Rule shall be construed to mean that no partnership, registered limited
liability partnership, or professional limited liability company exists.
(g) Notice that a CPA firm has dissolved or any
change in the information required by Paragraph (c)(3)
of this Rule shall be delivered to the Board's office within 30 days after the
change or dissolution occurs. A
professional corporation or professional limited liability company which is dissolving shall deliver the Articles of
Dissolution to the Board's office within 30 days of filing with the Office of
the Secretary of State.
(h) Upon written petition by a CPA firm, the
Board shall grant the CPA firm a conditional registration for a period of 60
days or less, if the CPA firm shows that circumstances beyond its control
prohibited it from registering with the Board, completing a peer review or
notifying the Board of change or dissolution pursuant to Paragraphs (a), (b),
(c), and (g) of this Rule. The Board may
grant a second extension under continued extenuating circumstances.
(i) A complete registration, as required by
Paragraphs (b) and (c) of this Rule, shall be postmarked with proper postage or
received in the Board office not later than the last day of January unless that
date falls on a weekend or federal holiday, in which case that day shall be the
next business day. Only a U.S. Postal
Service cancellation is considered as the postmark. If a registration is sent
to the Board office via a private delivery service, the date the package is
received by the delivery service is considered as the postmark.
21 NCAC 08J .0109 CPA Firm Practice Privilege Notification
Notice
pursuant to G.S. 93-10(c)(3) shall be made on a form
supplied by the Board.
T The annual registration fees shall be
as follows:
(1) For all professional corporations or
professional limited liability companies, twenty‑five dollars ($25.00);
and
(2) For all non‑incorporated CPA firms
which have offices both within and outside the state of North Carolina, whether
sole proprietorships, partnerships, or registered limited liability
partnerships, an amount equal to two thousand five hundred dollars ($2,500.00)
or the number of CPA members of the CPA firm multiplied by ten dollars
($10.00), whichever is less.
08J .0111 COMPLIANCE WITH CPA FIRM
REGISTRATION
If a CPA firm
fails to comply with any part of 21 NCAC 08J .0108 or 08J .0110, and continues
to offer or render services, the Board may take disciplinary action against the
CPA firm's members. Such discipline may
include:
(1) one hundred dollars ($100.00) civil
penalty for non-compliance of less than 60 days;
(2) two hundred dollars ($200.00) civil
penalty for non-compliance in excess of 60 days but not more than 120 days;
(3) five hundred dollars ($500.00) civil
penalty for each member for non-compliance in excess of 120 days.