§ 7406 — Limited permits and practice privilege

§ 7406. Limited permits and practice privilege. 1. Limited permits. On\nrecommendation of the board, the department may issue a limited permit\nto an applicant of good moral character, who is the holder of a\ncertificate, license or degree in a foreign country constituting a\nrecognized qualification for the performance in such country of the acts\nset forth in section seventy-four hundred one of this article, provided\nthe applicant has professional qualifications that are determined by the\nboard to be significantly comparable to the licensure requirements for\ncertified public accountancy pursuant to this article, and the applicant\nresides or has a place for the regular transaction of business within\nthe state, and equal recognition is granted by the foreign country\nconcerned to certified public accountants or public accountants licensed\nin the United States. Such limited permit shall be valid for a period of\ntwo years and may be renewed on recommendation of the board. Such permit\nshall authorize the applicant to use only the title or designation under\nwhich he or she is generally known in his or her own country, followed\nby the name of the country from which he or she received his or her\ncertificate, license or degree, notwithstanding the provisions of\nsubdivision two of section seventy-four hundred eight of this article.\nThe fee for each limited permit and each renewal shall be established in\nregulation by the board of regents.\n * 2. Practice privilege. a. Except as otherwise provided in\nsubparagraph two or three of paragraph f of this subdivision, a\ncertified public accountant, licensed by another state which the board\nof regents has determined to have substantially equivalent certified\npublic accountant licensure requirements, or whose individual licensure\nqualifications are verified by the department to be substantially\nequivalent to New York's requirements, and in good standing, who intends\nto perform any of the services in subdivision one, two or three of\nsection seventy-four hundred one of this article may practice public\naccountancy in this state, if the certified public accountant:\n (1) holds a valid license to practice public accountancy in the other\nstate, and\n (2) practices public accountancy in another state that is his or her\nprincipal place of business.\n b. The practice privilege allows such certified public accountant, who\nmeets the requirements of paragraph a of this subdivision to practice\npublic accountancy in this state.\n c. An individual who has been granted practice privileges under this\nsection who performs any of the services in subdivision one or two of\nsection seventy-four hundred one of this article may only do so through\na firm which has obtained a registration under section seventy-four\nhundred eight of this article. Such an individual, as well as an\nindividual with a New York license who does not have a principal place\nof business in New York, may provide services in subdivision three of\nsection seventy-four hundred one of this article through a firm of\ncertified public accountants that does not have a registration in this\nstate but that holds a valid license, registration, or permit in another\nstate.\n d. Any certified public accountant who practices in this state\npursuant to this section, and any firm that employs such certified\npublic accountant to provide such services in New York, consents to all\nof the following as a condition of the exercise of such practice\nprivilege:\n (1) to the personal and subject matter jurisdiction and disciplinary\nauthority of the board of regents as if the practice privilege is a\nlicense, and an individual with a practice privilege is a licensee;\n (2) to comply with this article, the rules of the board of regents and\nthe regulations of the commissioner; and\n (3) to the appointment of the secretary of state or other public\nofficial acceptable to the department, in the certified public\naccountant's state of licensure or the state in which the firm has its\nprincipal place of business, as the certified public accountant or\nfirm's agent upon whom process may be served in any action or proceeding\nby the department against such certified public accountant or firm.\n e. For purposes of this subdivision, the board of regents may\ndetermine that nationally-recognized certified public accountant\nlicensure requirements are substantially equivalent to New York's\nrequirements, such that an individual licensed in a state determined to\nhave licensure requirements substantially equivalent to the\nnationally-recognized CPA licensure requirements, or an individual whose\nlicensure qualifications are determined to be substantially equivalent\nto the nationally-recognized CPA licensure requirements, may practice\nunder the practice privilege pursuant to the requirements contained in\nthis subdivision.\n f. (1) A person who wishes to practice public accountancy in this\nstate but does not meet the requirements of paragraph a of this\nsubdivision is subject to the full licensing and registration\nrequirements of this article.\n (2) In the event the license from the other state of the certified\npublic accountant's principal place of business is no longer valid or in\ngood standing, or that the certified public accountant has had any final\ndisciplinary action taken by the licensing or disciplinary authority of\nany other state concerning the practice of public accountancy that has\nresulted in (i) the suspension or revocation of his or her license, or\n(ii) other disciplinary action against his or her license that arises\nfrom (a) gross negligence, recklessness or intentional wrongdoing\nrelating to the practice of public accountancy, (b) fraud or\nmisappropriation of funds relating to the practice of public\naccountancy, or (c) preparation, publication, or dissemination of false,\nfraudulent, or materially incomplete or misleading financial statements,\nreports or information relating to the practice of public accountancy,\nthe certified public accountant shall cease offering to perform or\nperforming such services in this state individually and on behalf of his\nor her firm, until and unless such certified public accountant receives\nwritten permission from the department to resume the practice of public\naccountancy in this state pursuant to subparagraph three of this\nparagraph.\n (3) Any certified public accountant who, within the last seven years,\nimmediately preceding the date on which he or she wishes to practice in\nNew York, (i) has been the subject of any final disciplinary action\ntaken against him or her by the licensing or disciplinary authority of\nany other jurisdiction with respect to any professional license or has\nany charges of professional misconduct pending against him or her in any\nother jurisdiction, or (ii) has had his or her license in another\njurisdiction reinstated after a suspension or revocation of said\nlicense, or (iii) has been denied issuance or renewal of a professional\nlicense or certificate in any other jurisdiction for any reason other\nthan an inadvertent administrative error, or (iv) has been convicted of\na crime or is subject to pending criminal charges in any jurisdiction,\nshall so notify the department, on a form prescribed by the department,\nand shall not practice public accountancy in this state under paragraph\na of this subdivision until he or she has received from the department\nwritten permission to do so. In determining whether the certified public\naccountant shall be allowed to practice in this state, the department\nshall follow the procedure to determine whether an applicant for\nlicensure is of good moral character. Anyone failing to provide the\nnotice required by this paragraph shall be subject to the personal and\nsubject matter jurisdiction and disciplinary authority of the board of\nregents as if the practice privilege is a license, and an individual\nwith a practice privilege is a licensee, and may be deemed to be\npracticing in violation of section sixty-five hundred twelve of this\ntitle.\n g. (1) Notwithstanding subparagraph two of paragraph a of this\nsubdivision or any other inconsistent law or rule to the contrary, a\ncertified public accountant licensed by another state and in good\nstanding who otherwise meets the practice privilege requirements under\nthis section and files an application for licensure under section\nseventy-four hundred four of this article may continue to practice under\nsuch privilege for a period coterminous with the period during which his\nor her application for licensure remains pending with the department,\nincluding any period after the certified public accountant establishes a\nprincipal place of business in New York while his or her application is\npending.\n (2) Nothing in this section shall limit the applicability of section\nseventy-four hundred seven of this article.\n * NB Effective until November 21, 2026\n * 2. Practice privilege. a. Except as otherwise provided in\nsubparagraph two or three of paragraph e of this subdivision, a\ncertified public accountant, licensed by another state, who intends to\nperform any of the services in subdivision one, two or three of section\nseventy-four hundred one of this article may practice public accountancy\nin this state, if the certified public accountant:\n (1) holds a valid license to practice public accountancy which is in\ngood standing in the other state,\n (2) practices public accountancy in another state that is such\ncertified public accountant's principal place of business,\n (3) has completed either of the professional education and experience\nrequirements as described in paragraphs two and three of subdivision one\nof section seventy-four hundred four of this article, and\n (4) has passed the written examination described in paragraph four of\nsubdivision one of section seventy-four hundred four of this article.\n b. The practice privilege allows such certified public accountant, who\nmeets the requirements of paragraph a of this subdivision to practice\npublic accountancy in this state.\n c. An individual who has been granted practice privileges under this\nsection who performs any of the services in subdivision one or two of\nsection seventy-four hundred one of this article may only do so through\na firm which has obtained a registration under section seventy-four\nhundred eight of this article. Such an individual, as well as an\nindividual with a New York license who does not have a principal place\nof business in New York, may provide services in subdivision three of\nsection seventy-four hundred one of this article through a firm of\ncertified public accountants that does not have a registration in this\nstate but that holds a valid license, registration, or permit in another\nstate.\n d. Any certified public accountant who practices in this state\npursuant to this section, and any firm that employs such certified\npublic accountant to provide such services in New York, consents to all\nof the following as a condition of the exercise of such practice\nprivilege:\n (1) to the personal and subject matter jurisdiction and disciplinary\nauthority of the board of regents as if the practice privilege is a\nlicense, and an individual with a practice privilege is a licensee;\n (2) to comply with this article, the rules of the board of regents and\nthe regulations of the commissioner; and\n (3) to the appointment of the secretary of state or other public\nofficial acceptable to the department, in the certified public\naccountant's state of licensure or the state in which the firm has its\nprincipal place of business, as the certified public accountant or\nfirm's agent upon whom process may be served in any action or proceeding\nby the department against such certified public accountant or firm.\n e. (1) A person who wishes to practice public accountancy in this\nstate but does not meet the requirements of paragraph a of this\nsubdivision is subject to the full licensing and registration\nrequirements of this article.\n (2) In the event the license from the other state of the certified\npublic accountant's principal place of business is no longer valid or in\ngood standing, or that the certified public accountant has had any final\ndisciplinary action taken by the licensing or disciplinary authority of\nany other state concerning the practice of public accountancy that has\nresulted in (i) the suspension or revocation of such certified public\naccountant's license, or (ii) other disciplinary action against such\ncertified public accountant's license that arises from (a) gross\nnegligence, recklessness or intentional wrongdoing relating to the\npractice of public accountancy, (b) fraud or misappropriation of funds\nrelating to the practice of public accountancy, or (c) preparation,\npublication, or dissemination of false, fraudulent, or materially\nincomplete or misleading financial statements, reports or information\nrelating to the practice of public accountancy, the certified public\naccountant shall cease offering to perform or performing such services\nin this state individually and on behalf of such certified public\naccountant's firm, until and unless such certified public accountant\nreceives written permission from the department to resume the practice\nof public accountancy in this state pursuant to subparagraph three of\nthis paragraph.\n (3) Any certified public accountant who, within the last seven years,\nimmediately preceding the date on which such certified public accountant\nwishes to practice in New York, (i) has been the subject of any final\ndisciplinary action taken against such certified public accountant by\nthe licensing or disciplinary authority of any other jurisdiction with\nrespect to any professional license or has any charges of professional\nmisconduct pending against such certified public accountant in any other\njurisdiction, or (ii) has had such certified public accountant license\nin another jurisdiction reinstated after a suspension or revocation of\nsaid license, or (iii) has been denied issuance or renewal of a\nprofessional license or certificate in any other jurisdiction for any\nreason other than an inadvertent administrative error, or (iv) has been\nconvicted of a crime or is subject to pending criminal charges in any\njurisdiction, shall so notify the department, on a form prescribed by\nthe department, and shall not practice public accountancy in this state\nunder paragraph a of this subdivision until such certified public\naccountant has received from the department written permission to do so.\nIn determining whether the certified public accountant shall be allowed\nto practice in this state, the department shall follow the procedure to\ndetermine whether an applicant for licensure is of good moral character.\nAnyone failing to provide the notice required by this paragraph shall be\nsubject to the personal and subject matter jurisdiction and disciplinary\nauthority of the board of regents as if the practice privilege is a\nlicense, and an individual with a practice privilege is a licensee, and\nmay be deemed to be practicing in violation of section sixty-five\nhundred twelve of this title.\n f. (1) Notwithstanding subparagraph two of paragraph a of this\nsubdivision or any other inconsistent law or rule to the contrary, a\ncertified public accountant licensed by another state and in good\nstanding who otherwise meets the practice privilege requirements under\nthis section and files an application for licensure under section\nseventy-four hundred four of this article may continue to practice under\nsuch privilege for a period coterminous with the period during which\nsuch certified public accountant's application for licensure remains\npending with the department, including any period after the certified\npublic accountant establishes a principal place of business in New York\nwhile such certified public accountant's application is pending.\n (2) Nothing in this section shall limit the applicability of section\nseventy-four hundred seven of this article.\n * NB Effective November 21, 2026\n