Current through Register Vol. 47, No. 17, September 10, 2024
This Rule is promulgated pursuant to sections
12-20-204,
12-100-105(1)(b),
and 12-100-117(2),
C.R.S.
A.
SCOPE OF THE PRACTICE
PRIVILEGE
A licensee who qualifies for the Practice Privilege under
Rule 1.14 may provide Professional Services in this state and shall be deemed
to have all the privileges of a certificate holder or registrant without the
need to obtain a Colorado certificate or firm registration. No notice or other
submission shall be required of any such licensee. Such licensee is subject to
the provisions of section
12-100-117(2)(c),
C.R.S., and these Rules.
B.
REQUIREMENTS
1. Individual
Practice Privilege requirements.
a. An
individual shall be presumed to have qualifications substantially equivalent to
this state's requirements and shall have all the privileges of a certificate
holder without the need to obtain a certificate under section
12-100-107, C.R.S., if:
(1) The individual's principal place of
business is not in this state. For purposes of this Rule 1.14, "Principal Place
of Business" is presumed to be the location designated by the individual, but
the presumption will be overcome if:
(1) the
individual establishes residency in this state; and
(2) the individual provides or offers professional
services to his employer or to a client or potential client located in this
state. Provided further that if the individual submits an application for a
Colorado certificate within sixty days of establishing residency in this state,
the individual may continue to have all the privileges of a certificate holder
until such time as a Colorado certificate is granted or denied;
and
(2) The individual
holds an active certificate or license issued by any state that NASBA's
national qualification appraisal service has verified to be substantially
equivalent to the CPA licensure requirements of the AICPA/ NASBA
Uniform Accountancy Act (UAA); or
(3) The individual holds an active
certificate or license issued by any state that NASBA's national qualification
appraisal service has not verified to be substantially equivalent with the CPA
licensure requirements of the UAA, but such individual obtains from NASBA's
national qualification appraisal service verification that such individual's
CPA qualifications are substantially equivalent to the CPA licensure
requirements of the UAA. Any individual who has passed the examination and
holds an active certificate or license issued by any other state prior to
January 1, 2012, shall be exempt from the education requirements in the
UAA.
2. Firm
Practice Privilege requirements.
Notwithstanding section
12-100-114, C.R.S., a foreign
partnership, corporation, limited partnership, limited liability limited
partnership, or limited liability company that has an active/valid certificate,
license, or registration to practice public accountancy issued by another state
that satisfies the requirements of section
12-100-117(2)(a),
C.R.S., may engage in the practice of accountancy in this state without
registering with the Board.
3. Contact information required.
Every licensee providing professional services in this state
shall provide contact information to clients as required under section
12-100-112(2),
C.R.S.
C.
DISCIPLINE FOR HOLDERS OF THE PRACTICE PRIVILEGE
1. Practice Privilege Holders.
Licensees who hold a practice privilege are subject to the
jurisdiction and the disciplinary authority of the Board pursuant to section
12-100-117(2)(c),
C.R.S. The Board may deny, revoke, suspend, or impose other conditions and
limitations on the practice privilege, or may fine, issue a letter of
admonition, place on probation, or impose other conditions or limitations on a
licensee practicing under the practice privilege for any of the grounds for
discipline specified in section
12-100-120(1),
C.R.S., with the exception of section
12-100-120(1)(h), (i), and
(n).
2. Licensees holding the practice privilege
are subject to the disclosure requirements as described in Rules 1.9(E) and
1.15(G).
D.
FOREIGN INDIVIDUALS
1. An
individual who holds a degree, certificate, or license in a foreign country to
practice public accounting may provide professional services in this state
without a certificate issued under the Act or a certificate or license issued
by another U.S. jurisdiction, provided that: The degree, certificate, or
license is a recognized qualification for the practice of public accounting in
that country and the certificate or license is active and in good
standing;
2. The individual's
principal place of business, as defined in Rule 1.14, is not in this state;
and
3. The practice is incident to
the individual's regular practice outside this state. "Incident to" means the
professional services provided are temporary and a subordinate component of
professional services otherwise performed outside of this state.
4. Individuals who practice public accounting
under this Rule 1.14 are subject to the jurisdiction and disciplinary authority
of the Board. The Board may deny, revoke, suspend, or impose other conditions
and limitations on the privilege to practice under this Rule 1.14(D) (the
"Foreign Practice Privilege"), or may fine, issue a letter of admonition, place
on probation, or impose other conditions or limitations on an individual
practicing under the foreign practice privilege any of the grounds for
discipline specified in section
12-100-120(1),
C.R.S., with the exception of section
12-100-120(1)(h), (i), and
(n).
5. An individual who meets the requirements
of Rule 1.14 is not required to submit any notice or fee to the Board as a
condition of practicing. But the individual must respond to all Board
communications within thirty days and must submit all information as requested
in connection with an investigation or action initiated under Rule 1.14
(D)(2).
E.
REQUIREMENT TO REPORT DISCIPLINE
1. If the certificate, license, registration,
or other authority to practice of an individual or firm is limited or subject
to any form of discipline while the individual or firm is exercising its
practice privilege under this Rule 1.14, the individual or firm must notify the
Board, in a manner prescribed by the Board, of the limitation or discipline
within thirty days of the action taken.
