Active vs. Inactive CPAs:
What's the difference?
Is it worth the cost to maintain your active CPA status? What will going 'inactive' mean for you professionally? How do you use the designation if you switch?
CPAs often have many questions when they consider active or inactive status. Use this chart to compare the costs, effort, benefits and disadvantages of being an active or inactive CPA in Minnesota.
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Active Status |
Inactive Status |
Required status
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- CPAs who prepare tax returns for a public accounting firm with a CPA firm permit
- CPAs who issue compilation reports other than through a CPA firm
- CPAs employed by the Office of the Legislative Auditor or State Auditor
See BOA rule 1105.2500
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- Sufficient if preparing a small number of returns each year
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| Cost |
- $148.50: three-year certificate renewal fee to Minnesota Board of Accountancy (BOA)
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- $35: three-year certificate renewal fee to Minnesota Board of Accountancy (BOA)
- No change in MNCPA dues for inactive status
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| Requirements |
- Minimum of 20 CPE hours annually
- 120 CPE hours every 3 years, including 8 hours of ethics
- Maintain records of completed CPE credits
- CPE courses must comply with BOA rules
- Renew certificate and report CPE based on BOA's three-year renewal cycle
View current CPE rules
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- State 'inactive' when using CPA credential
- Renew certificate based on BOA's three-year renewal cycle
- No CPE credits required
- Must return to active status to use CPA without 'inactive' modifier
View steps to convert to active
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| Advantages |
- Display you are qualified professional
- Promote strong technical, personal and ethical skills using CPA designation
- Mitigate risk for your clients or company with current knowledge of regulations and trends
- Increase your marketability and job opportunities. Salary can increase as much as 10% with CPA credential
- Be more qualified to use 'CPA' in other states, as active certificate is more substantially equivalent
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- No required educational costs
- No restrictions on format or topic of educational programs you choose to attend, such as company-led training
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| Disadvantages |
- Increased costs to maintain CPA certificate
- Time away from office necessary to attend live CPE courses
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- Public confusion over validity of CPA credential by using 'inactive' modifier
- Potentially outdated skills or management practices without continued classroom training
- May not be eligible to use 'CPA, inactive' in other states with no substantial equivalency
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Questions?
The MNCPA does not manage CPA certificates in Minnesota. For specific information regarding CPA certificates, contact the Minnesota Board of Accountancy.