H. R. 6956 - Barcode Automation for Revenue Collection to Organize Disbursement and Enhance Efficiency Act

Sep 4, 2026

Uploaded by Violet

H. R. 6956 directs federal tax administration to improve digitization of tax returns and correspondence submitted in paper form. For electronically prepared returns printed and filed on paper, the return must bear a scannable code and the IRS must use barcode scanning to convert the contained data to electronic format. For non-electronically prepared paper returns and most paper correspondence, the IRS must use optical character recognition technology to transcribe records, with exceptions where faster or more reliable manual or other IRS processes exist and with reporting requirements for any exception.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

AccessFree to download

SECTION 1. SHORT TITLE

SEC. 2. SCANNING AND DIGITIZATION OF TAX RETURNS AND CORRESPONDENCE

(a) RETURNS PREPARED ELECTRONICALLY AND SUBMITTED ON PAPER

(b) OPTICAL CHARACTER RECOGNITION SOFTWARE

(d) EFFECTIVE DATE

I 119HDCSONGREESSIONSS H. R. 6956 To require electronically prepared tax returns to include scannable code when submitted on paper, and to require the use of optical character recognition technology for paper documents received by the Internal Revenue Service. IN THE HOUSE OF REPRESENTATIVES JANUARY 7, 2026 Mr. SCHNEIDER (for himself and Mr. YAKYM) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To require electronically prepared tax returns to includescannable code when submitted on paper, and to require the use of optical character recognition technology for paper documents received by the Internal Revenue Service. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE. 4 This Act may be cited as the ‘‘Barcode Automation 5 for Revenue Collection to Organize Disbursement and En- 6 hance Efficiency Act’’ or the ‘‘BARCODE Efficiency 7 Act’’. 2 1 SEC. 2. SCANNING AND DIGITIZATION OF TAX RETURNS 2 AND CORRESPONDENCE. 3 (a) RETURNS PREPARED ELECTRONICALLY AND 4 SUBMITTED ON PAPER.—With respect to any Federal tax 5 return which is prepared electronically, but is printed and 6 filed on paper— 7 (1) such return shall bear a code which, when 8 scanned, converts the data included in such return 9 to electronic format, and 10 (2) subject to subsection (b)(1)(B), the Internal 11 Revenue Service shall use barcode scanning tech- 12 nology to convert the data included in such returns 13 to electronic format. 14 (b) OPTICAL CHARACTER RECOGNITION SOFT- 15 WARE.—With respect to— 16 (1) any Federal tax return which— 17 (A) is not prepared electronically and is 18 printed and filed on paper, or 19 (B) is described in subsection (a)(1) but, 20 for any reason, the data included in such return 21 cannot be accurately converted into electronic 22 format, or 23 (2) any correspondence which is received by the 24 Internal Revenue Service in a paper form (with the 25 exception of any such correspondence which has 3 1 been received by the Internal Revenue Service in 2 electronic format), 3 the Internal Revenue Service shall use optical character 4 recognition technology (or any functionally similar tech- 5 nology) to transcribe such return or correspondence. 6 (c) EXCEPTION.— 7 (1) IN GENERAL.—Subsection (a) or (b) shall 8 not apply to the extent that the Secretary of the 9 Treasury or the Secretary’s delegate determines that 10 the technology described in such subsection is slower 11 or less reliable than— 12 (A) the process of manually transcribing 13 returns or correspondence received in a paper 14 form, or 15 (B) any other process that the Internal 16 Revenue Service is using or would otherwise 17 use. 18 (2) REPORT TO CONGRESS.—Any exception to 19 the application of subsection (a) or (b) pursuant to 20 paragraph (1) shall not take effect unless the Sec- 21 retary provides a report to the Committee on Ways 22 and Means of the House of Representatives and the 23 Committee on Finance of the Senate regarding the 24 determination made by the Secretary under such 25 paragraph within 30 days of such determination. 4 1 (d) EFFECTIVE DATE.—This section shall apply to— 2 (1) any individual income tax return (as defined 3 in section 6011(e)(3)(C) of the Internal Revenue 4 Code of 1986) received on or after January 1 of the 5 first calendar year beginning more than 180 days 6 after the date of enactment of this Act, 7 (2) any estate tax return (as described in sec- 8 tion 6018 of such Code) or gift tax return (as de- 9 scribed in section 6019 of such Code) received on or 10 after January 1 of the first calendar year beginning 11 more than 24 months after the date of enactment of 12 this Act, and 13 (3) any other return or correspondence received 14 on or after January 1 of the first calendar year be- 15 gi

FAQs

What must electronically prepared tax returns submitted on paper include under the bill?

They must bear a scannable code that converts the included data to an electronic format when scanned.

How does the bill require the IRS to handle paper tax returns or correspondence when data cannot be accurately converted?

The IRS must use optical character recognition technology, or a functionally similar technology, to transcribe the return or correspondence.

When can the IRS be exempt from the scanning or OCR requirements, and what reporting is required?

An exception can be made if the Treasury Secretary determines the described technology is slower or less reliable than manual transcription or other IRS processes. The exception does not take effect unless a report is provided to relevant House and Senate committees within 30 days of the determination.

Sep 4, 2026

Uploaded by Violet