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TITLE 22EXAMINING BOARDS
PART 22TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
CHAPTER 513REGISTRATION
SUBCHAPTER BREGISTRATION OF CPA FIRMS
RULE §513.16Death or Incapacitation of Firm Owner

(a) Upon written authorization from the executive director, a firm with only one CPA owner may continue to operate for a period of up to 15 months following the death or incapacitation of the sole CPA owner. The executive director, subject to ratification at the next board meeting, may permit the continued operation of the firm when he has been provided with:

  (1) In the event of the death of the sole CPA owner:

    (A) a certified copy of the sole CPA owner's death certificate;

    (B) a copy of the power of attorney from the sole CPA owner's executor, administrator, or heir along with a document from the executor, administrator or heir designating a Texas CPA in good standing with the board with the authority and intention to manage the sole CPA owner's firm; and

    (C) written evidence that a disruption in the continuation of the sole CPA owner's firm would jeopardize the survivability of the firm.

  (2) In the event of the incapacitation of the sole CPA owner:

    (A) a notarized affidavit from the sole CPA owner's physician stating that the sole CPA owner, because of a severe ongoing physical, mental impairment or medical condition is not able to perform the day-to-day tasks necessary for the continued operation of the firm;

    (B) a copy of a power of attorney or a court ordered guardianship along with a document from the holder of the power of attorney or the guardian designating a Texas CPA in good standing with the board with the authority and intention to manage the sole CPA owner's firm; and

    (C) written evidence that a disruption of the continuation of the sole CPA owner's firm would jeopardize the survivability of the firm.

(b) Upon the death of a co-owner of a firm with a surviving CPA owner, the firm may continue to operate during the period the owner's estate is being probated. The firm's resident manager shall notify the board in the firm's next annual licensing application of the status of the firm's ownership.


Source Note: The provisions of this §513.16 adopted to be effective August 4, 2004, 29 TexReg 7307; amended to be effective August 3, 2017, 42 TexReg 3786; amended to be effective April 18, 2018, 43 TexReg 2274

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