A bipartisan bill aimed at modernizing the IRS and speeding up tax return processing has passed the U.S. House and now moves to the Senate.

The BARCODE Efficiency Act (H.R. 6956), led by Rudy Yakym and Brad Schneider, would require the IRS to implement scanning technology to process paper tax returns more efficiently.

Supporters say the measure would reduce errors, cut costs, and help taxpayers receive refunds faster.

Yakym called the bill a “commonsense measure” that would modernize the tax system and improve service without adding complexity.

House Ways and Means Committee Chairman Jason Smith said the legislation would streamline tax filing and reduce delays that many Americans face when submitting paper returns.

While electronic filing has grown significantly-reaching about 155 million returns in 2025-roughly 10.5 million taxpayers still filed paper returns last year.

According to a 2025 report from the Taxpayer Advocate Service, those paper filings continue to face delays due to manual data entry, prompting calls for modernization.

The bill would require the IRS to adopt scanning technology for both electronically prepared and handwritten returns, with the goal of reducing backlogs and allowing staff to focus more on customer service.