(a) The Arkansas State Board of Public Accountancy may by rule create an exception to the continuing education requirement of § 17-12-502 for licensees who do not perform or offer to perform for the public:
(1) One (1) or more kinds of services involving the use of accounting or auditing skills, including issuance of reports on financial statements;
(2) One (1) or more kinds of management advisory, financial advisory, or consulting services;
(3) The preparation of tax returns; or
(4) The furnishing of advice on tax matters.
(b) A licensee granted an exception under subsection (a) of this section by the board shall place the word “inactive” adjacent to his or her CPA title or PA title on any business card, letterhead, electronic transmission, or any other document or device, with the exception of his or her CPA certificate or PA registration, on which his or her CPA or PA title appears.
(c) The following activities are exempted from the restrictions provided in subsection (a) of this section:
(1) Attorneys with a current law license may provide tax services as allowed by his or her law license while his or her CPA or PA license is on inactive status;
(2) A nonresident licensee who holds an active CPA or PA license to practice in his or her state of residence may engage in the activities permitted by the license issued by the state of residence while his or her Arkansas CPA or PA license remains inactive, but he or she may not engage in the activities listed in subsection (a) of this section within this state, for clients who are residents of this state, or for clients whose home office is located in this state without an active Arkansas CPA or PA license;
(3) An inactive licensee may provide services listed in subsection (a) of this section on a volunteer basis if no compensation is received, the services are not attest services, and no documents are signed as a CPA or PA by the inactive licensee; and
(4) An inactive licensee who has returned to work involving the practice of public accounting and has applied with the board to upgrade his or her license to active status may engage in the activities listed in subsection (a) of this section if he or she is supervised by another active licensee and no documents are signed as a CPA or PA by the inactive licensee until his or her application is approved by the board.