BARCODE Efficiency Act

Key Points

• If you print a tax return that was made on a computer and mail it in, it would need a scannable barcode so the tax agency can upload it faster.
• For paper returns that don’t have a barcode (or don’t scan right), the tax agency would use “read-the-text” scanning software to turn the paper into digital data.
• This is meant to speed up processing of mailed-in taxes and paper letters, which could mean faster refunds and fewer backlogs during busy tax season.
• There’s a safety valve: if the Treasury Department says the tech is slower or less reliable than current methods, they can pause it, but they must report to Congress within 30 days.
• The timeline depends on the type of tax form: most paper items start about 12 months after it becomes law; individual income taxes start after at least 180 days; estate and gift taxes get up to 24 months.