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HR6956119th CongressWALLET

BARCODE Efficiency Act

Sponsored By: Representative Schneider, Bradley Scott [D-IL-10]

Passed House

Summary

Digitize paper tax documents using scanning and optical character recognition (OCR). The bill would require printed electronic returns and other paper tax submissions to be converted into electronic files using scanning and OCR, with phased start dates by return type.

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  • Taxpayers who prepare returns electronically but print and mail them must format those printouts for scanning, and the IRS would convert them into electronic records. This applies to individual income tax returns received on or after Jan 1 of the first calendar year beginning more than 180 days after enactment.
  • People who file fully on paper or send paper correspondence would have returns and most form letters transcribed by OCR or similar technology instead of manual entry.
  • Estate and gift tax filers face a later phase in. The rule applies to those returns received on or after Jan 1 of the first calendar year beginning more than 24 months after enactment.
  • The IRS must use scanning and OCR for conversions but the Treasury Secretary can grant an exception if the technology is slower or less reliable than manual methods. Any exception requires a report to the House Ways and Means Committee and the Senate Finance Committee within 30 days.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

New IRS scanning rules for paper filers

The IRS would scan paper tax returns and paper letters into electronic files, using optical character recognition (OCR) when needed. If you prepare your return electronically but print and mail it, you would need to use a scannable format. Individual income tax returns would follow this rule for returns received on or after January 1 of the first calendar year beginning more than 180 days after enactment. Other returns and correspondence would start for items received on or after January 1 of the first calendar year beginning more than 18 months after enactment; estate and gift returns would start on or after January 1 of the first calendar year beginning more than 24 months after enactment. The Treasury Secretary would be able to allow exceptions if scanning is slower or less reliable, but only after reporting to House Ways and Means and Senate Finance within 30 days.

Sponsors & CoSponsors

Sponsor

Schneider, Bradley Scott [D-IL-10]

IL • D

Cosponsors

  • Rep. Yakym, Rudy [R-IN-2]

    IN • R

    Sponsored 1/7/2026

Roll Call Votes

No roll call votes available for this bill.

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