A bill 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.

2/7/2025, 11:56 AM

Summary of Bill S 452

Bill 119 s 452, also known as the "Electronic Tax Return Modernization Act," aims to improve the efficiency and accuracy of tax return processing by requiring electronically prepared tax returns to include a scannable code when submitted on paper. This code will allow the Internal Revenue Service (IRS) to easily scan and process the information contained in the tax return.

Additionally, the bill mandates the use of optical character recognition technology for paper documents received by the IRS. This technology will help the IRS quickly and accurately convert paper documents into digital format, making it easier to process and analyze the information.

Overall, the Electronic Tax Return Modernization Act seeks to streamline the tax return process, reduce errors, and improve the overall efficiency of the IRS. By implementing these technological advancements, the bill aims to make tax filing easier for individuals and businesses while also enhancing the IRS's ability to accurately process and analyze tax returns.

Congressional Summary of S 452

Barcode Automation for Revenue Collection to Organize Disbursement and Enhance Efficiency Act or the BARCODE Efficiency Act

This 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 slower or less reliable than other IRS processes (subject to conditions).

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.

Current Status of Bill S 452

Bill S 452 is currently in the status of Bill Introduced since February 6, 2025. Bill S 452 was introduced during Congress 119 and was introduced to the Senate on February 6, 2025. Bill S 452's most recent activity was Read twice and referred to the Committee on Finance. as of February 6, 2025

Bipartisan Support of Bill S 452

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill S 452

Primary Policy Focus

Alternate Title(s) of Bill S 452

A bill 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.