BARCODE Efficiency Act

IRS would scan paper tax returns

This bill would require the IRS to convert most paper tax returns and letters into electronic data. Printed returns that were prepared electronically would need a scanner-friendly format, and the IRS would scan them. For returns not prepared electronically, for printed returns the IRS cannot convert accurately, and for paper correspondence (not already sent electronically), the IRS would use optical character recognition or similar tools. The Treasury Secretary could allow manual processing instead if scanning is slower or less reliable, but would need to report that decision to the House Ways and Means and Senate Finance Committees within 30 days. The rules would start in phases: for individual returns received on or after January 1 of the first calendar year beginning more than 180 days after enactment; for estate and gift returns on or after January 1 of the first calendar year beginning more than 24 months after enactment; and for other returns and correspondence on or after January 1 of the first calendar year beginning more than 18 months after enactment.