BARCODE Efficiency Act
- Bill Number
- H.R. 6956
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Passed House
- Latest Action
- 2026-04-28: Received in the Senate and Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-06-11T23:26:41Z
AI-Generated Summary
H.R. 6956: BARCODE Efficiency Act
Purpose
This legislation aims to modernize the processing of paper tax returns and correspondence at the Internal Revenue Service (IRS) by mandating the use of scanning technology and optical character recognition (OCR) software. OCR is a technology that converts printed text into editable digital data. The goal is to automate data entry, improve efficiency, and reduce manual processing.
Key Provisions
- Electronically Prepared Paper Returns:
- Returns prepared electronically but printed and filed on paper must be formatted to work with IRS scanning technology.
- The IRS must scan these to convert data into electronic format (unless scanning fails, then OCR applies).
- Non-Electronic Paper Returns and Correspondence:
- Applies OCR (or similar technology) to paper tax returns not prepared electronically and all paper correspondence received by the IRS (excluding already electronic items).
- Exceptions:
- The Treasury Secretary can waive requirements if the technology is slower or less reliable than manual transcription or current IRS processes.
- Waivers require a report to Congress (House Ways and Means Committee and Senate Finance Committee) within 30 days.
- Effective Dates (all starting January 1 of the specified year post-enactment):
- Individual income tax returns: More than 180 days after enactment.
- Estate and gift tax returns: More than 24 months after enactment.
- All other returns and correspondence: More than 18 months after enactment.
Significant Changes to Existing Law
- Introduces new federal requirements for formatting and processing paper tax documents, shifting from manual data entry to automated scanning and OCR.
- No prior mandates existed for scannable formats on electronically prepared paper filings or universal OCR use, marking a push toward full digitization of IRS paper intake.
Potential Impacts
- Government Agencies (IRS): Faster processing of paper filings, potential reduction in backlogs and errors, and cost savings from less manual labor; may require initial tech investments.
- Citizens/Taxpayers: Those filing paper returns (e.g., individuals without e-filing access) face no direct new burdens but must ensure electronically prepared forms are scannable; could lead to quicker refunds or notices.
- International Relations: None.
Main Stakeholders Affected
- IRS and Treasury Department: Primary implementers, responsible for technology adoption and reporting.
- Taxpayers Filing Paper Returns: Especially those using tax software that prints forms.
- Tax Preparers and Software Providers: Must update formats for compatibility with IRS scanning.
- Congress: Gains oversight through required exception reports.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes enforceable technology standards with a flexible exception process tied to congressional notification, balancing mandates with practicality.
- Constitutional: No apparent challenges; falls under Congress's taxing and spending powers.
- Political: Promotes administrative efficiency in tax collection, potentially appealing across parties for reducing IRS workload without forcing full e-filing.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Schneider, Bradley Scott [D-IL-10]
Cosponsors (1)
Recent Actions
- 2026-04-28: Received in the Senate and Read twice and referred to the Committee on Finance.
- 2026-04-27: Motion to reconsider laid on the table Agreed to without objection.
- 2026-04-27: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3100)
- 2026-04-27: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3100)
- 2026-04-27: DEBATE - The House proceeded with forty minutes of debate on H.R. 6956.
- 2026-04-27: Considered under suspension of the rules. (consideration: CR H3100-3101)
- 2026-04-27: Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- 2026-02-20: Placed on the Union Calendar, Calendar No. 434.
- 2026-02-20: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-508.
- 2026-02-20: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-508.
- 2026-01-14: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 42 - 0.
- 2026-01-14: Committee Consideration and Mark-up Session Held
- 2026-01-07: Referred to the House Committee on Ways and Means.
- 2026-01-07: Introduced in House
- 2026-01-07: Introduced in House
Bill Versions
- Barcode Automation for Revenue Collection to Organize Disbursement and Enhance Efficiency Act — issued 2026-04-27 — PDF (6 pages)
- Barcode Automation for Revenue Collection to Organize Disbursement and Enhance Efficiency Act — issued 2026-01-07 — PDF (4 pages)
- Barcode Automation for Revenue Collection to Organize Disbursement and Enhance Efficiency Act — issued 2026-04-28 — PDF (5 pages)
- Barcode Automation for Revenue Collection to Organize Disbursement and Enhance Efficiency Act — issued 2026-02-20 — PDF (6 pages)