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119-s-452119th CongressWALLET

BARCODE Efficiency Act

Sponsored By: Senator Young, Todd [R-IN]

Introduced

Summary

Digitize paper tax returns with barcodes and optical character recognition (OCR). This bill would require the IRS to add scannable barcodes to electronically‑prepared returns that are printed and filed on paper, use barcode scanning to convert those returns into electronic data, and use OCR or similar technology to transcribe other paper returns and correspondence unless those methods are slower or less reliable than current processes.

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  • Taxpayers who prepare returns electronically but mail printed copies would get scannable barcodes on those paper returns. The requirement would apply to individual returns received on or after January 1 of the first calendar year beginning more than 180 days after enactment.
  • People who submit paper returns not prepared electronically and who send paper correspondence would have that material transcribed by OCR or similar tech. Estate and gift returns have a later start date and would apply on or after January 1 of the first calendar year beginning more than 24 months after enactment.
  • The IRS could decline to use barcode scanning or OCR if the Secretary finds those methods slower or less reliable than other processes, but any such determination must be reported to the House Ways and Means Committee and the Senate Finance Committee within 30 days.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Barcode and OCR for paper filings

If enacted, the bill would require machine-readable codes and OCR for paper tax forms and paper letters to the IRS. Electronically prepared returns that are printed and mailed would need a scannable code that converts the form to electronic data. The IRS would be required to use barcode scanning for those returns and to use OCR or similar technology for paper returns not prepared electronically, for electronic-paper returns that cannot be read, and for paper correspondence. The Treasury Secretary could exempt the rules if the technology is slower or less reliable, but only after reporting the determination to the House Ways and Means Committee and the Senate Finance Committee within 30 days. Correspondence already received electronically would be excluded.

Staggered start dates for filings

If enacted, this bill would set different start dates for the scanning and OCR rules. For individual income tax returns, it would apply to returns received on or after January 1 of the first calendar year beginning more than 180 days after enactment. For estate and gift tax returns, it would apply to returns received on or after January 1 of the first calendar year beginning more than 24 months after enactment. For other returns and paper correspondence, it would apply to documents received on or after January 1 of the first calendar year beginning more than 12 months after enactment.

Sponsors & CoSponsors

Sponsor

Young, Todd [R-IN]

IN • R

Cosponsors

  • Sen. Warnock, Raphael G. [D-GA]

    GA • D

    Sponsored 2/6/2025

Roll Call Votes

No roll call votes available for this bill.

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