Hoosier State Today

U.S. Senators Todd Young and Raphael Warnock have introduced the BARCODE Efficiency Act, a legislative proposal aimed at enhancing the processing of paper tax returns by the Internal Revenue Service (IRS). The act seeks to implement 2-D barcode technology to streamline IRS operations, conserve resources, and minimize errors.

Senator Young highlighted the prolonged waiting periods faced by taxpayers for return processing. "Millions of Americans are forced to wait months – and sometimes years – for the IRS to process their tax returns," he stated. He emphasized that the bill would enhance efficiency in handling paper returns.

Senator Warnock expressed concern about the current state of tax filing for those using paper returns. "We live in an increasingly digital age, but our tax filing system hasn’t kept up for the millions of Americans who still use paper returns," said Warnock. He believes that this legislation will expedite refund processes for these taxpayers.

The manual transcription method currently employed by the IRS is both time-consuming and costly. The proposed act would mandate that electronically prepared paper returns include a scannable 2-D barcode, allowing quick conversion into digital format. Similar recommendations have been made by both the National Taxpayer Advocate and the Government Accountability Office in past years.

The Senate Finance Committee has supported common-sense improvements like those proposed in this act as part of broader efforts to modernize IRS procedures. This aligns with ongoing initiatives within the IRS itself to update its processing systems.

Senator Young initially introduced this legislation in 2024 as part of his broader efforts to modernize IRS operations. In 2022, he urged then-IRS Commissioner Charles Rettig through a letter to adopt 2-D barcoding technologies during the 2023 tax season.

Further details on this legislative effort are available through official documents released by Senator Young's office.