S.452 - Barcode Automation for Revenue Collection to Organize Disbursement and Enhance Efficiency Act; BARCODE Efficiency Act (119th Congress)
Summary
S.452, the BARCODE Efficiency Act, mandates the use of scannable codes on electronically prepared tax returns submitted on paper. It also requires the IRS to use Optical Character Recognition (OCR) technology for paper documents. The goal is to streamline tax return processing and improve efficiency within the IRS.
Expected Effects
The Act aims to reduce manual data entry and processing times at the IRS. This will likely lead to faster processing of tax returns and correspondence. It could also reduce errors associated with manual data entry.
Potential Benefits
- Increased efficiency in processing tax returns.
- Reduced errors in data entry.
- Faster turnaround times for taxpayers.
- Potential cost savings for the IRS.
- Improved data accuracy for tax administration.
Most Benefited Areas:
Potential Disadvantages
- Initial costs for implementing the new technologies.
- Potential for errors in barcode scanning or OCR technology.
- Possible need for training IRS staff on new systems.
- Exception clause could be used to avoid implementation.
- Taxpayers who do not prepare returns electronically may face disadvantages.
Constitutional Alignment
The bill aligns with the Constitution's grant of power to Congress to lay and collect taxes, as outlined in Article I, Section 8, Clause 1. By improving the efficiency of tax collection, the bill supports the government's ability to fund public services and fulfill its constitutional obligations. There are no apparent conflicts with individual rights or liberties protected by the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).