BARCODE Efficiency Act
BARCODE Efficiency Act
Plain Language Summary
# BARCODE Efficiency Act Summary **What the bill would do:** The BARCODE Efficiency Act would require the IRS to modernize how it processes tax returns and documents by using barcode technology and optical character recognition (similar to the technology that reads text in images). Specifically, the bill would mandate that electronically-prepared tax returns printed on paper include barcodes that the IRS can scan to digitize the information. For handwritten or non-electronic paper returns, the IRS would use optical character recognition to automatically convert the information into digital format.
The agency only needs to skip this requirement if the technology would be slower or less reliable than their current processes. **Who it affects:** This bill primarily affects the IRS and how it operates internally. Indirectly, it could benefit taxpayers by potentially speeding up processing times and reducing errors, though the bill's main focus is on modernizing IRS operations rather than changing rules for filers. **Current status:** The bill was introduced by Senator Todd Young (R-IN) in the 119th Congress and is currently in committee, meaning it hasn't been voted on yet and may not advance further.
CRS Official Summary
Barcode Automation for Revenue Collection to Organize Disbursement and Enhance Efficiency Act or the BARCODE Efficiency ActThis bill requires the Internal Revenue Service (IRS) to use barcodes, barcode scanning technology, and optical character recognition (or similar) technology to digitize certain federal tax return information and correspondence, unless the technology is slower or less reliable than other IRS processes (subject to conditions). Specifically, the bill requires a scannable barcode on electronically-prepared federal tax returns that are printed and filed in paper format with the IRS. The bill also requires the IRS to use barcode scanning technology to convert data included on such returns into an electronic format.Further, the bill requires the IRS to use optical character recognition (or similar) technology to transcribe federal tax returns and correspondence received by the IRS that are not prepared electronically and are received in paper format.However, under the bill, the use of barcodes, barcode scanning technology, and optical character recognition (or similar) technology is not required if (1) such technology is slower or less reliable than manual transcription or any other IRS process, and (2) the IRS provides a report to Congress regarding the determination to not use such technology.
Latest Action
Read twice and referred to the Committee on Finance.