Bill · S. 452· Senate(119-S-452)
BARCODE Efficiency Act
- Introduced
- 2/6/2025
- Last activity
- 2/6/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Todd Young
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
This bill, known as the "BARCODE Efficiency Act," aims to modernize how the Internal Revenue Service handles paper documents. It requires that tax returns prepared electronically but submitted on paper must include a scannable code. The bill also mandates that the IRS use barcode scanning technology or optical character recognition technology to transcribe paper returns and correspondence. There are specific exceptions if the technology is found to be less reliable than manual transcription. The requirements would take effect on different dates depending on the type of return or correspondence being processed.
Yes· 3 of 4
Does this make what the government does easier for the public to see?+3
The bill mandates reporting to Congress if the Secretary determines automated processes are less reliable than manual ones.
Does this give people more protection from unfair business practices?+2
The bill improves the accuracy of data conversion for tax returns and correspondence through automated technology.
Would households on low incomes be better off under this?+1
Automation of paper-based returns may lead to faster processing of tax-related information for all filers.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Electronic Data Conversion: For tax returns prepared electronically but filed on paper, the return must bear a code that converts the data to an electronic format (Section 2(a)(1)). This is intended to streamline the transition from paper to digital systems.
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Automated Transcription for Non-Electronic Returns: For tax returns not prepared electronically, or correspondence received in paper form, the IRS shall use optical character recognition technology to transcribe the information (Section 2(b)). This aims to automate the processing of physical documents.
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Flexibility for Accuracy: The Secretary of the Treasury can opt out of these requirements if the automated technology is slower or less reliable than manual transcription (Section 2(c)(1)). This ensures that the drive for automation does not compromise the reliability of the data processing.
Potential Negative Impacts for People
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Increased Requirements for Paper Filers: Individuals who prepare their tax returns electronically but choose to file them on paper must ensure their return includes a specific scannable code (Section 2(a)(1)).
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Potential for Inaccurate Conversions: There is a provision for cases where the data in an electronically prepared return cannot be accurately converted into electronic format via the code, requiring the use of optical character recognition instead (Section 2(b)(1)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Improves Government Transparency+3
- Economy And Finance
- Improves Consumer Protection+2
- Demographic And Interest Groups
- Good For Low Income Households+1
- Education And Technology
- Improves Data Privacy+1
- 2/6/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
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.
Raphael WarnockDemocrat · Georgia