Pub. 2 2020 Issue 4

M A Y / J U N E 2 0 2 0 8 nebraska cpas WHAT IT MEANS TO BE A TWO-TIERED STATE S TAT E B O A R D R E P O R T BY DAN SWEETWOOD, NEBRASKA BOARD OF PUBLIC ACCOUNTANCY Nebraska is a two-tieredaccounting state—alongwith Alabama, Connecticut, Hawaii, Illinois, Kansas, and Oklahoma. Two-tier states have two steps that must be completed before an accountant is considered a licensed CPA. In addition, you need a state’s license or permit to meet the substantially equivalent requirements in other states. In the first tier, a Certificate Number is issued permanently to the candidate after successful completion of the U.S. Uniform CPA Examination. This person is known as a Certificate Holder in Nebraska and must file an annual registration with the Nebraska Board of Public Accountancy office. Although considered a Certificate Holder, the individual has no status as a CPA within Nebraska. After completion of two years of public accounting experience within a CPA firm under the direction of a CPA (or three years in business, government, and academia) a Certificate Holder may file an application for issuance of anActive Permit to Practice that allows the individual to “hold out” to the public as a CPA and practice public accountancy. A license number is issued with the individual’s Active Permit to Practice. The permit number is separate from the person’s permanent Certificate Number and changes every two years upon successful completion of 80 hours of requiredContinuing Professional Education (CPE). If an Active Permit Holder decides to forgo the CPE requirement, they may elect to register with the Nebraska Board of Public Accountancy as an Inactive Registrant and are issued a