IRS must scan paper tax returns and use barcodes.

What it does

The bill tells the IRS to turn paper tax returns into computer files. Paper returns made on machines must have scannable barcodes. The IRS must convert all paper documents to computer format using optical character recognition. This reads text from images and turns it into words. The Treasury Secretary can skip this rule if hand work is faster or better.

Who it affects

Taxpayers get faster refunds and fewer errors in processing. The IRS must spend money on new machines. The IRS must hire workers to set up scanning systems. Companies that make scanning machines and barcodes may get new work.

One thing to notice

The bill lets the Treasury Secretary stop using new machines if hand work is faster. This could slow down changes if the IRS lacks money to test if machines work well.

From the analysis of the bill text, linked under Primary records below.

Where it stands

1 cosponsor: 1 Republicans.

• Jan 7, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jan 7, 2026 — Referred to House Committee on Ways and Means and Senate Committee on Finance · Congress.gov: “Referred to the House Committee on Ways and Means”
• Jan 14, 2026 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Jan 14, 2026 — Reported out of committee · Congress.gov: “Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 42 - 0”
• Apr 27, 2026 — Passed the House · Congress.gov: “On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3100)”
• Apr 27, 2026 — Floor vote scheduled · Congress.gov: “Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

2 groups reported lobbying about this bill. They filed 2 reports from Mar 2026 to Jun 2026.

Those reports show $19,820,000 in lobbying spending. Each report lists about 132 bills. So that money was not all for this bill.

More groups named this bill than 41% of bills with any report.

Brad Schneider, who sponsored the bill, received $1,372,749 from PACs for the 2026 election.

• Chamber of Commerce of the U.S.A. — $19,750,000 in 1 report
• Americans for Tax Reform — $70,000 in 1 report

Lobbying is legal. These reports show who lobbied about this bill, not what changed.

Words to know

• optical character recognition — Machines that read text from images and turn it into words.
• barcode — A pattern of lines that machines can scan to read facts.
• Treasury Secretary — The head of the U.S. money office.
• lobbying — Trying to influence lawmakers about a bill. Companies and groups pay people to do this.
• PACs — Groups that collect money and give it to candidates for office.
• sponsored — To sponsor a bill is to introduce it in Congress and put your name on it.