This bill modernizes how the IRS handles paper tax returns and documents by requiring barcodes and automated scanning technology. Here's what it does: When someone prepares their tax return electronically but prints it out to file on paper, that return must include a scannable barcode. The IRS will then use barcode scanning technology to automatically convert the paper return into electronic format, eliminating manual data entry. For returns that weren't prepared electronically in the first place, or when barcode scanning fails, the IRS must use optical character recognition (OCR) technology—the same technology that can read handwritten or printed text and convert it to digital data. This also applies to any paper correspondence the IRS receives. The goal is straightforward: reduce the time and errors involved in manually typing information from paper documents into the IRS's computer systems. There's a built-in safeguard: if the Treasury Secretary determines that these technologies are actually slower or less reliable than manual entry, they can request an exception, but they must report this decision to Congress within 30 days.

BARCODE Efficiency Act

Schneider, Bradley Scott

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&nbsp;slower or less reliable than other IRS processes (subject to conditions).&nbsp;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.