CPE Compliance at the Time of Status Change
Leaving Active Status for Retired, Exempt, or Inactive Status
On or After July 1: If you held an Active license after June 30 of a CPE reporting year then you have incurred a CPE reporting obligation (MN Rules 1105.3200[D]). An exception to this is new licensees who have not yet held their license for a first full CPE reporting year—see the "CPE for Newly Licensed CPAs and Non-Residents" page. To request status change to any other status (Inactive, Exempt, or Retired), you are first required to be in good standing with that prior obligation: You must complete and report the required CPE and pay any fees.
For example:
- It is July 1, 2024, and you plan to change to Retired or Exempt status on December 31, 2024: You must report CPE that will make you compliant with the 1- and 3-year CPE reporting requirements. If you did not earn all CPE needed to meet the requirements, you will need to earn carryback and pay the late earning CPE noncompliance fee. You must submit the Retired or Exempt status form and be in compliance with the other requirements associated with the requested status. See the directions for each form for additional information.
- It is January 1, 2024, and you did not yet renew for 2024 and now plan to change to Retired or Exempt status: You must report CPE that will make you compliant with the 1- and 3-year CPE reporting requirements. You will owe the CPE late reporting noncompliance fee or will, if you did not earn all CPE needed to meet the requirements, need to earn carryback and pay the late earning CPE noncompliance fee. You must submit the Retired or Exempt status form and pay the $50 late filing fee.
- It is January 1, 2024, and you did not yet renew for 2024 and now plan to change to Inactive status: You must report CPE that will make you compliant with the 1- and 3-year CPE reporting requirements. You will owe the CPE late reporting noncompliance fee or will, if you did not earn all CPE needed to meet the requirements, need to earn carryback and pay the late earning CPE noncompliance fee. You must submit the 2024 Late CPA Renewal form and pay the $50 late filing fee. If applying for an Inactive license, you also owe the $25 Inactive licensee fee.
Prior to July 1: An Active licensee seeking status change to Exempt or Retired whose license is in good standing and who has not yet incurred the CPE obligation (the current CPE period has not concluded as it is not yet July 1) may request status change to Exempt or Retire without reporting any additional CPE.
For example:
- You renewed as Active for 2024. It is now after January 1, 2024 but not yet July 1, 2024, and you wish to change to Retired or Exempt status: You have no CPE obligation. Submit the Retired or Exempt status form and be in compliance with the other requirements associated with the requested status (see form). There is no status change fee.
- It is June 30, 2024, and you did not renew for 2024 and now plan to change to Retired or Exempt status: This is the same situation as the second bullet point above. You owe CPE, CPE noncompliance fees, and late filing fees. If applying for an Inactive license, you also owe the $25 Inactive licensee fee.
- You renewed as Active for 2024. It is now after January 1, 2024 but not yet July 1, 2024, and you wish to change to Inactive status: You cannot change to Inactive status except at the time of renewal (MN Rules 1105.3000.F). You will need to wait for 2025 renewals. You will incur the CPE obligation for CPE reporting year FY24 (July 1, 2023-June 30, 2024).
Reactivating When Currently Retired, Exempt, or Inactive Status
Request for reactivation (status change to Active) may be made at any time of the year and is made using the Status Change to Active Request form. It is effective upon approval. An exception is that Inactive status holders in good standing may use the current year's Renewal form to request a status change that would be effective on January 1 of that renewal year (or as of the date the renewal is accepted, if the renewal request is late).
To reactivate from Retired, Exempt or Inactive to Active, the applicant must document 120 hours of CPE complying with MN Rules 1105.3000.E earned within three calendar (not fiscal) years of the date the Board receives your application. Qualifying CPE previously reported to the Board as well as any new CPE needed to meet requirements may be used; however, the applicant has the obligation to submit the detail as requested on the application form for all CPE reported. Complete the CPE reporting forms; do not submit your own spreadsheets or lists. Incorrectly completed applications/forms will be returned. CPE certificates of completion are not required unless the Board explicitly requests them from you.
If you held an Active license after June 30 of a CPE reporting year then you have incurred a CPE reporting obligation. An exception to this is new licensees who have not yet held their license for a first full CPE reporting year—see description above. To request status change to any other status (Inactive, Exempt, or Retired), you are first required to be in good standing with that prior obligation: You must complete and report the required CPE and pay any fees.
For example:
- It is July 1, 2023, and you plan to change to Retired or Exempt status on December, 31, 2023: You must report CPE that will make you compliant with the 1- and 3-year CPE reporting requirements. If you did not earn all CPE needed to meet the requirements, you will need to earn carryback and pay the late earning CPE noncompliance fee. You must submit the Retired or Exempt status form and be in compliance with the other requirements associated with the requested status.
- It is January 1, 2024, and you did not yet renew for 2024 and now plan to change to Retired or Exempt status: You must report CPE that will make you compliant with the 1- and 3-year CPE reporting requirements. You will owe the CPE late reporting noncompliance fee or will, if you did not earn all CPE needed to meet the requirements, need to earn carryback and pay the late earning CPE noncompliance fee. You must submit the Retired or Exempt status form and pay the $50 late filing fee.
- It is January 1, 2024, and you did not yet renew for 2024 and now plan to change to Inactive status: You must report CPE that will make you compliant with the 1- and 3-year CPE reporting requirements. You will owe the CPE late reporting noncompliance fee or will, if you did not earn all CPE needed to meet the requirements, need to earn carryback and pay the late earning CPE noncompliance fee. You must submit the 2024 Late CPA Renewal form and pay the $50 late filing fee as well as the $25 Inactive licensee fee.
