H.R. 6956 - BARCODE Efficiency Act

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Summary

The BARCODE Efficiency Act would modernize how the IRS processes paper tax documents by requiring the agency to implement barcode scanning and optical character recognition technology. When taxpayers print and file electronically-prepared tax returns on paper, those returns would need to include scannable barcodes that the IRS would use to convert the information into digital format. For tax returns and correspondence that are handwritten or not electronically prepared, the IRS would use optical character recognition or similar technology to automatically transcribe the information.

The bill includes a practical safeguard: the IRS would not be required to use these technologies if they are slower or less reliable than existing manual transcription methods. If the IRS determines that automated technology would not improve efficiency, it would need to report that decision to Congress. If enacted, this bill could potentially reduce processing times and errors in tax return handling, though the actual impact would depend on how effectively the IRS implements the technology.

This bill has passed committee review by the House Ways and Means Committee and is now eligible for a floor vote in the House of Representatives. However, it would still need to pass the full House, the Senate, and receive the President's signature to become law.

AI-generated summary

Lifecycle of the Bill

Committee Consideration and Mark-up Session Held

Jan 14, 2026

Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 42 - 0.

Jan 14, 2026

HearingHouseMarkup

Jan 14, 2026 · 14:30

H.R. 6956, H.R. 6903, H.R. 6431, and H.R. 6945

Committee

House Committee on Ways and Means

View full hearing

Summary

On January 14, 2026, the House Committee on Ways and Means held a markup session to consider four bills addressing tax administration, child support enforcement, entrepreneurship, and family support programs. H.R. 6956, the BARCODE Efficiency Act, requires the Internal Revenue Service to use barcode scanning technology and optical character recognition to digitize electronically-prepared tax returns filed on paper and other paper correspondence. The bill aims to modernize IRS processing and reduce refund delays. H.R. 6903, the Ensuring Children Receive Support Act, would require the Department of State to revoke passports of noncustodial parents owing more than $2,500 in past-due child support, except in emergency situations. H.R. 6431, the New Opportunities for Business Ownership and Self-Sufficiency Act, modifies Self-Employment Assistance programs by increasing the participation cap from 5 to 10 percent of unemployment insurance claimants and eliminating the requirement that participants be likely to exhaust benefits. H.R. 6945, the Supporting Pregnant and Parenting Women and Families Act, clarifies that states may use Temporary Assistance for Needy Families funds to support pregnancy centers. All four bills advanced from committee with amendments. H.R. 6956 passed 42-0, H.R. 6903 passed 40-2, H.R. 6431 passed 41-0, and H.R. 6945 passed 25-18. Committee approval does not guarantee the bills will advance to the full House floor for a vote.