What the DOE’s accounting degree reclassification means for future tax professionals

The U.S. Department of Education has proposed a major shift in how it defines “professional degrees,” narrowing the designation to a handful of fields such as medicine, law and dentistry. 

Under this new definition, accounting degrees would no longer be classified as professional, a change that carries significant implications for students, the tax profession, and the millions of Americans who rely on trained tax preparers every year.

This week, NATP formally urged Education Secretary Linda McMahon to reconsider the change.

Read NATP’s letter to the Department of Education

1. The reclassification lowers federal loan limits for accounting students.

Under the department’s proposed rules, “non-professional” degrees would qualify for reduced federal borrowing levels, making accounting education less financially accessible.

This could deter students from entering the field, especially:

• First-generation college students
• Students from rural or underserved communities
• Adults seeking a career change
• Working students completing degrees part-time
• Anyone needing graduate-level coursework to advance

For a profession that already requires rigorous education and often additional coursework for licensure, lowering loan access could make a critical career path harder to pursue.

2. Accounting is a professional field, and the reclassification doesn’t reflect that.

Accounting is not simply a business major. It is a licensed, regulated, ethics-based profession with real-world public responsibility.

Tax professionals and accountants:

• Complete extensive coursework
• Uphold ethical and legal standards
• Maintain continuing education
• Help taxpayers navigate complex federal and state laws
• Protect the integrity of the tax system

Reclassifying these degrees as “non-professional” does not align with real-world requirements or the public-facing nature of this work.

3. The tax-professional workforce is already stretched thin.

More than 80 million taxpayers rely on paid preparers each year. Many small businesses, elderly taxpayers, rural communities and underserved populations depend on credentialed professionals to prepare accurate returns and resolve IRS issues.

But the tax workforce is aging, and firms across the country report difficulty recruiting new talent – a trend NATP members have voiced repeatedly.

Limiting access to accounting education risks:

• Shrinking the talent pipeline
• Increasing filing errors
• Lengthening IRS response backlogs
• Reducing availability of professional help in underserved areas
• Exacerbating seasonal workforce shortages

This isn’t just an academic concern. It’s a practical one with direct consequences for taxpayer service.

4. Taxpayer service and compliance could suffer.

The federal tax code is becoming more complex each year. New credits, expanded eligibility rules, increased digital reporting requirements and shifting IRS processes all increase the need for well-trained professionals.

If fewer students can afford to pursue accounting degrees, taxpayers could experience:

• Longer wait times for appointments
• Reduced access to qualified preparers
• Higher risk of filing mistakes
• Greater reliance on unregulated or untrained preparers
• Increased compliance challenges

Taxpayers deserve access to professionals who have the knowledge, training and support they need to file accurately.

NATP is calling for reconsideration and collaboration.

In its letter, NATP urged the Department of Education to restore accounting to the list of recognized professional degrees or reevaluate borrowing limits for degrees that lead to licensed, regulated, public-serving professions.

NATP also offered to work directly with the department to ensure the final rules accurately reflect the reality of the tax and accounting workforce.

As NATP CEO Scott Artman, CPA, CGMA, noted in the letter,

“Accounting is a profession built on rigorous education, ethical standards and oversight. A fair and accurate classification system should strengthen pathways into this field, not restrict them.”

What happens next?

The department’s rulemaking process is ongoing, and NATP expects further updates as feedback from educators, policymakers, and professional associations is reviewed.

NATP will continue monitoring developments closely and will keep members informed about:

• Changes to federal loan eligibility
• Potential revisions to the professional degree definition
• Impacts on accounting education and student access
• Implications for the tax-professional workforce

We remain committed to advocating for policies that strengthen the tax profession and protect taxpayer access to qualified assistance.

For media inquiries, contact Samantha Strong, NATP PR manager, or Nancy Kasten, NATP marketing director.