Bill · H.R. 6956· House(119-HR-6956)
BARCODE Efficiency Act
- Introduced
- 1/7/2026
- Last activity
- 4/28/2026 — Received in the Senate and Read twice and referred to the Committee on Finance.
- Sponsored by
- Bradley Schneider
- Cosponsors
- - 0 - 1
- Introduced
- Passed House
- In Senate committee
What this bill would do
This act, known as the "BARCODE Efficiency Act," establishes new requirements for how the Internal Revenue Service handles paper tax returns and correspondence. It requires that tax returns prepared electronically but submitted on paper be formatted for specific scanning technology. The Internal Revenue Service is also directed to use optical character recognition technology to transcribe paper documents that were not prepared electronically or cannot be converted accurately. There are exceptions if the Secretary of the Treasury determines the technology is slower or less reliable than manual transcription. The act includes specific effective dates for individual income tax returns, estate or gift tax returns, and other correspondence.
Yes· 3 of 4
Would households on low incomes be better off under this?+1
The use of optical character recognition for non-electronic returns may facilitate easier processing for those filing paper forms.
Would middle-income households be better off under this?+1
The automation of paper returns may streamline the tax filing process for middle-income paper filers.
Would people in rural areas be better off under this?+1
Improved digitization of paper returns may benefit residents in areas with less digital infrastructure who rely on paper filing.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Automated Data Conversion: Under Section 2(a)(2), the Internal Revenue Service will use scanning technology to convert electronically prepared paper returns into electronic format, which may assist in processing data.
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Transcription of Non-Electronic Documents: According to Section 2(b), the use of optical character recognition technology for non-electronically prepared returns or paper correspondence can be used to transcribe those documents into electronic format.
Potential Negative Impacts for People
-
Formatting Requirements for Paper Filers: Per Section 2(a)(1), individuals who prepare their tax returns electronically but choose to file them on paper must ensure their returns are formatted in a manner compatible with the Internal Revenue Service's scanning technology.
-
Potential Delays in Implementation: As noted in Section 2(d), the new requirements for different types of returns do not take effect immediately, with some starting only after specific timeframes following the act's enactment.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+1Good For Middle Class Households+1Good For Rural Residents+1
- Governance And Ideology
- Improves Government Transparency+1
- 4/28/2026
- Received in the Senate and Read twice and referred to the Committee on Finance.
- 4/27/2026
- Motion to reconsider laid on the table Agreed to without objection.
- 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)
- On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3100)
- DEBATE - The House proceeded with forty minutes of debate on H.R. 6956.
- Considered under suspension of the rules. (consideration: CR H3100-3101)
- Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- 2/20/2026
- Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-508.
- Placed on the Union Calendar, Calendar No. 434.
- 1/14/2026
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 42 - 0.
- 1/7/2026
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Rudy YakymRepublican · Indiana