Reactivating a lapsed Certified Public Accountant (CPA) license involves a structured process to restore the professional credential, which is required to use the title or perform public accounting services. The CPA license serves as the public’s assurance of competence, confirming the licensee has maintained the necessary professional knowledge and ethical standards. Since the authority to issue and govern the license rests entirely with state-level agencies, the specific requirements and steps vary significantly across the 55 U.S. jurisdictions. This guide outlines the journey a CPA must navigate to transition their status from inactive or expired back to active practice.
Identify Your State Board and Specific Requirements
The first step in the reactivation process is identifying the governing body for your license: the State Board of Accountancy (or equivalent agency) in the jurisdiction where the credential was originally issued. Each board operates under distinct statutes and administrative rules that dictate the definition of a lapsed license and the terms for its return to active status. Relying on the rules of a different state will result in an incorrect application.
The National Association of State Boards of Accountancy (NASBA) provides a directory of all jurisdictional boards, which is the most reliable starting point for finding contact information. Once the board is identified, the applicant must locate the specific administrative code or rule concerning “reinstatement” or “reactivation,” as these documents contain the official requirements.
Determine Your License Status and Reactivation Path
The path to reactivation depends heavily upon the specific status of the license and the reason for its inactivity. A voluntarily inactive or retired status is generally the simplest to reactivate, as the licensee proactively chose to step away from public practice. This typically requires payment of a reactivation fee and completion of backdated Continuing Professional Education (CPE).
A license that is lapsed or expired due to a failure to pay renewal fees or submit timely CPE reports is more complex, often requiring the payment of back fees and late penalties. Some states differentiate between “reinstatement” for shorter lapses and “restoration” for longer periods. The most onerous path is faced by a CPA whose license was suspended or revoked due to disciplinary action. This involves a formal review by the board and may necessitate legal intervention and a demonstration of rehabilitation. If a person performed attest work or held themselves out as a CPA during the lapsed period, they face a board investigation, fines, and potential rejection.
Fulfilling the Continuing Professional Education (CPE) Mandates
Catching up on missed Continuing Professional Education (CPE) hours is often the most time-consuming component of the reactivation process. Boards require the applicant to demonstrate that their knowledge is current, usually by completing the total number of CPE hours that would have been required had the license been active throughout the lapse period.
Many jurisdictions mandate that a certain portion of this catch-up CPE must have been completed within a recent look-back window, such as the 24 months immediately preceding the application submission. For instance, a state might require 80 hours completed in the last two years, regardless of the total number of years lapsed. Specific subject requirements, such as a mandatory state-specific ethics course, are also common and must be fulfilled with recent credit. Some boards impose additional CPE requirements as a penalty for the compliance failure.
Administrative Requirements and Fees
Financial and administrative requirements must be addressed separately from the educational mandates. A non-refundable application fee is universally required, with costs varying widely, often ranging from $250 to $350. In addition to the application fee, the applicant must pay all back-renewal fees that were missed during the period of inactivity.
Late penalty fines are also frequently assessed for expired licenses and can be substantial. Beyond monetary payments, some boards require administrative components, such as a formal consent form for a background investigation. Applicants may also need to provide character references or submit notarized statements confirming they did not practice public accountancy during the time their license was lapsed.
The Reactivation Application and Review Process
Once all educational and financial requirements have been met, the final step is compiling and submitting the formal reactivation application package. This submission must be made on the board’s official form, often requiring meticulous detail and sometimes notarized signatures. The package must include comprehensive supporting documentation, such as CPE certificates of completion and detailed receipts for all fee payments.
Incomplete applications are the leading cause of processing delays, with some boards returning applications that are missing any single document. Applicants should use the submission checklist provided by the board and ensure all paperwork is properly organized before sending it through the specified channel, whether an online portal or physical mail. The review process can take anywhere from a few weeks to several months, especially if the board needs to investigate the applicant’s activities during the lapse period.
Maintaining Active Status Going Forward
After reactivation, the focus must shift to ensuring continuous compliance to prevent a future lapse. The most effective strategy is to proactively set reminders for all renewal deadlines, noting that license cycles often run on biennial or triennial schedules. Licensees should aim to complete their CPE hours throughout the year, rather than waiting until the renewal period. Promptly notifying the State Board of Accountancy about any changes to a home or business address, or changes in employment status, ensures the licensee receives all official communications regarding renewal and compliance.