S. 452 — BARCODE Efficiency Act

This section requires the IRS to use barcode scanning technology to convert into electronic format any electronically prepared federal tax return that is printed and filed on paper (which must bear a scannable code). It further requires the IRS to use optical character recognition technology (or functionally similar technology) to transcribe (1) any other paper-filed federal tax return and (2) any paper correspondence received by the IRS (except correspondence already received electronically). It authorizes the Secretary of the Treasury to exempt such requirements if the specified technologies are determined to be slower or less reliable than manual transcription or other IRS processes, provided the Secretary reports the determination to the House Ways and Means Committee and Senate Finance Committee within 30 days. The requirements apply to individual income tax returns received on or after January 1 of the first calendar year beginning more than 180 days after enactment; estate and gift tax returns received on or after January 1 of the first calendar year beginning more than 24 months after enactment; and all other returns and correspondence received on or after January 1 of the first calendar year beginning more than 12 months after enactment.