The Devil's in the Details...Know the NFA Laws!

[Intoodeep]

If this just helps one member better understand the laws it will be well worth it. Too often people make bad choices out of a lack of knowledge. Most violations that are used to condemn the law abiding firearm community are committed by people who just do not know, this will help point them in a positive direction where to get more informed.

the national firearms act of 1934 (nfa 34): this law placed certain classes of firearms into a registered ownership category. Private individuals can possess a functional machine gun, silencer (suppressor), short-barreled rifle or shotgun, smooth-bore pistol, cane gun, or destructive device (certain shotguns, grenade launchers, hand grenades, bazookas, mortars, cannon, etc.) only after first paying a federal transfer tax of either $5 or $200 per firearm/device. The $5 tax applies to pen guns, cane guns, smoothbore pistols, or any other such firearm that the bureau of alcohol, tobacco, firearms, and explosives (batfe) classifies as "any other weapon" (aow). All other functional guns or devices in the nfa registry require payment of a $200 federal tax for each private transfer. The tax is not an annual tax. It only is paid each time a functional nfa firearm is being transferred to or from a private owner (excepting inheritance).

the gun control act of 1968 (gca 68): largely modeled after the 1938 gun control act of nazi germany, a section of this law updated the national firearms act of 1934 (nfa 34) by restricting the transfer of newly imported machine guns to the military, law enforcement, and certain special occupational tax (sot) payers. In addition, a short moratorium was provided before the law went into effect, to allow unregistered machine guns and other nfa firearms already in private hands, to be added to the federal registry without penalty.

the gun owners protection act of 1986 (gopa 86): a somewhat vague statement was added to this bill that has been interpreted by the bureau of alcohol, tobacco, firearms and explosives (batfe) and some federal courts to mean no machine guns registered after enactment (may 19, 1986) can be built and sold to private individuals. Batfe further concluded that special occupational tax (sot) payers cannot receive "post-may" guns without first presenting a letter from a qualifying government agency that has requested to see the firearm. These rulings do not apply to other types of national firearms act (nfa) firearms. Transfers to government agencies having law enforcement or military functions are allowed. Sot payers who are also licensed as manufacturers are allowed to produce machine guns from scratch, from kits, or by means of conversion. They cannot transfer them to private individuals. They can be transferred to other sot payers or government agencies only as described above. Post-may 19th guns cannot be retained by a sot payer who fails to renew his sot annually.

the violent crime control and law enforcement act of 1994 (vcclea 94): this law sunset on 30 sep 04 and no longer applies. This law banned the public sale of new detachable magazines with more than a ten round capacity, and invented a new term - assault weapon, the future manufacture of which were also banned from public sale. Note, the law applies only to firearms manufactured after enactment of the law. Specifically, it limits certain features on certain types of firearms. Semiautomatic rifles with detachable magazines may possess no more than one of the following features: Pistol grip protruding conspicuously beneath the action, telescoping or folding stock, threaded barrel designed to accommodate a flash suppressor, flash suppressor (not to be confused with a muzzle brake), grenade launcher, bayonet mount. Semiautomatic pistols with detachable magazines may possess no more than one of the following features: Magazine that attaches outside the pistol grip, threaded barrel, shrouded barrel, unloaded weight of 50 ounces or more, a semiautomatic version of an automatic firearm. Semiautomatic shotguns may possess no more than one of the following features: Folding or telescoping stock, pistol grip that protrudes conspicuously below the action, fixed magazine capacity over five rounds, ability to accept detachable magazines.

state laws and local ordinances: most states allow ownership of at least some types of national firearms act (nfa) firearms, but at least eleven states (and perhaps some local municipalities) have statutes or ordinances that restrict or ban ownership. These restrictions may vary from requiring a state permit to outright denial. These states include california, hawaii, illinois, iowa, maine, michigan, mississippi, new jersey, new york, and rhode island. At least one state, washington, allows ownership of suppressors but does not allow their use! If you are uncertain of the laws in your area, contact your state or national gun rights organization for help. They likely will know more about your local firearms laws than anybody else.

where to find nfa firearms: a private citizen can acquire national firearms act (nfa) firearms from other private individuals or dealers in his own state so long as there are no state laws restricting ownership. Most states (40 at our last count) allow private ownership of at least some nfas, but if you have any questions, e-mail us and we'll let you know. Regular gun dealers, sot payers, military organizations, and law enforcement agencies can acquire nfa firearms from sources in any state, i.e., manufacturers, dealers, private collectors, or government agencies. Confiscated firearms may be retained or acquired by state or local government agencies, with the approval of the bureau of alcohol, tobacco, firearms and explosives (batfe).

private transfers: a private citizen can acquire functional national firearms act (nfa) firearms from private collections in his own state, provided he first pays the applicable nfa transfer tax (form 4) on each firearm and receives prior approval from the bureau of alcohol, tobacco, firearms and explosives (batfe). The form 4 requires payment of the applicable federal transfer tax. Unless filing as an estate (trust) or corporation, the applicant also must provide recent photographs, fingerprint cards, and a law enforcement endorsement. If a firearm is nonfunctional and registered as a dewat (deactivated war trophy), the tax is not due, but a form 5 must be filed and approved before taking receipt of the nfa firearm. The form 5 also requires a law enforcement endorsement, fingerprint cards, and photographs. If a private citizen is receiving any nfa firearm as the lawful heir of an estate, the tax exempt form 5 is submitted along with fingerprint cards and photographs, but the law enforcement endorsement is not required. Inherited firearms can be shipped to a lawful heir residing in another state if the receiving state allows private ownership of the particular type of nfa. The heir cannot take receipt of the firearm until the form 5 is approved by batfe.

government agency transfers: there are no federal prohibitions on any type of government entity acquiring most national firearms act (nfa) firearms, including many destructive devices. Some states prohibit law enforcement agencies from possessing certain types of nfa firearms or destructive devices. All government agencies are exempt from paying federal transfer taxes or federal excise taxes. In most cases, machine guns and other nfa weapons can be imported, purchased off-the-shelf, or custom manufactured specifically for any authorized government agency by using the tax exempt form 5. Seized or confiscated firearms can be retained by state and local law enforcement agencies, but they must be registered with batfe on a form 10. Federal agencies are exempt from the registration requirement. Excluding direct military contracts with licensed manufacturers, all other transfers to government agencies, including law enforcement agencies, must first be approved by batfe. All foreign transfers require state department approval.

sot dealer transfers: the special occupational tax (sot) is an annual fee paid to the u.s. Treasury department by dealers, manufacturers, or importers of certain products including alcohol, tobacco, and firearms. In the case of firearms, the sot is broken down between national firearms act (nfa) dealers, manufacturers, and importers (a separate sot applies to destructive devices). For our purposes the term "sot payer" refers to any currently licensed gun dealer, manufacturer, or importer who also has paid the sot for dealing in nfa firearms. Sot payers have the advantage of being able to transfer tax exempt, functional nfa firearms to other sot payers and government agencies, with the prior approval of the bureau of alcohol, tobacco, firearms and explosives (batfe). Sot payers also can acquire registered nfa firearms from any regular gun dealer or private citizen, but only after paying the applicable transfer tax and receiving batfe approval. Sot payers can transfer certain functional nfa firearms to in-state residents and to both in-state and out-of-state regular gun dealers, but only after they have paid the appropriate transfer tax and received approval from batfe.

Read More

 

[Intoodeep]

regular gun dealer transfers: regular gun dealers or manufacturers who do not pay the special occupational tax (sot) to deal in national firearms act (nfa) firearms, still can acquire functional nfa firearms from in-state or out-of-state sources. If the firearm is a machine gun, they are restricted to purchasing only those machine guns registered prior to may 19, 1986, excluding all dealer samples. The applicable nfa transfer taxes must first be paid on each nfa firearm ordered. Once this paperwork is approved and they have received shipment, transfers can then be conducted with private individuals in-state, or with other dealers either in-state or out-of-state. These transfers also require payment of the tax and batfe approval before they can be completed.

how to pay the tax: if you are acquiring a national firearms act (nfa) firearm from a (special occupational tax) sot payer, he will provide you with copies of the required paperwork for each firearm being transferred to you. If this is a private transfer or a transfer from a regular gun dealer who does not possess a sot, forms can be acquired from the bureau of alcohol, tobacco and firearms (batfe), national firearms act branch, washington, d.c. Some states have their own requirements in addition to the federal paperwork. Check with the appropriate licensing bureau in your state. The federal paperwork involves three forms, two of which must be completed in duplicate (atf form 4 and fingerprint card). The front of the atf form 4s are filled out and signed by the seller (see exceptions for sot payers and corporations below). On the back of the form 4s are placed recent photographs of the purchaser. The purchaser also signs the block under his photograph. The bottom backside of the form is endorsed by the purchaser's sheriff, chief judge, police chief, etc. The second set of forms is the fbi fingerprint cards. While the form 4 is being endorsed, ask to be fingerprinted using the cards supplied by batfe. Both the person fingerprinted and the person taking them signs these forms. The third form is the atf 5330.20, certificate of compliance with 18 u.s.c. 922(g)(5)(b). This is a statement by the transferee (buyer) that he is a legal resident of the united states. The transferee should complete this form using capital letters and sign it. The transferor (seller) then mails the paperwork and a check for the federal transfer tax to batfe. On average it takes about 90 days for approval. The seller will receive back one of the form 4s with a federal transfer tax stamp attached to it. This is given to the purchaser when he picks up the nfa firearm. It's his firearm from then on. No further tax is due.

corporate or estate ownership: in some areas it is difficult to get a law enforcement signature on the tax paid form 4 request to transfer a national firearms act (nfa) firearm. To circumvent this problem, some people purchase the gun through a corporation or an estate. If you are a sot payer acquiring a firearm from a private source, a private individual who is creating an estate, or someone who is incorporated or is a senior officer in a corporation, you can acquire an nfa firearm on a form 4 without the need for a law enforcement endorsement, photograph, or fingerprint card. You still must pay the federal transfer tax. If the gun is being transferred to a corporation (or other legal entity such as at trust), it must be retained by the corporation (or trust) until it is dissolved. At such time the gun must be sold or re-titled to another entity or person using a tax paid transfer, or surrendered to the bureau of alcohol, tobacco and firearms (batfe).

In the case of a corporate transfer, the federal firearms license (ffl) holder will use the legal name of the corporation to identify it as the transferee on the form 4 application. No individual name shall be included in identifying the transferee. A copy of the articles of incorporation must be included with the form 4. This documentation must identify a point of contact for the corporation and must be sufficient for atf to establish the legitimacy of the corporation. If the firearm being transferred is a machine gun, short barreled rifle, short barreled shotgun, or destructive device, an officer or director of the corporation must complete item 15 on the reverse side of the form 4. Items 13, 14, 16, and 17 of the form 4 do not require completion for transfer to a corporation, nor is the submission of atf form 53330.20, certification of compliance with 18 usc 9229g)(5)(b), required.

In the case of estate ownership, an nfa firearm can be transferred using an approved form 4, or made using an approved form 1 (with the exception of machine guns which currently are restricted from private manufacture). Estate owned firearms also can be inherited by rightful heirs. Establishing the estate trust is simple. You have the option to do it yourself with a simple google search online or by purchasing the form at a local office supply store. The safest way, however, is to use a local notary public, cpa, or lawyer. Whichever course you choose, complete the revocable living trust form by entering your name in the appropriate blank, and the name of a designated successor trustee. Two witnesses must be present to sign and have the notary public apply their seal and complete the form. If using the notary public for the entire job (recommended), your cost and the time required are minimal. All you will need is satisfactory identification (ask the notary public what is preferred). The form contains a schedule a and schedule b which are left blank, but must be included with the documentation establishing the trust when the batfe form 4 or form 1 is submitted to batfe for approval. This documentation must identify a point of contact for the trust and must be sufficient for batfe to establish the legitimacy of the trust.

In the case of form 4 transfers, the ffl holder will use the legal name of the trust to identify it as the transferee on the form 4 application. In block 2a (transferee's name and address), enter "the (your name) revocable living trust" with your address. If the firearm being transferred is a machine gun, short barreled rifle, short barreled shotgun, or destructive device, a director of the trust must complete item 15 (transferee's certification) on the reverse side of the form 4. Enter the trust name in the first blank and sign your name and the title "grantor and trustee" in the bottom block, and date it. Items 13, 14, 16, and 17 of the form 4 do not require completion for transfer to a trust, nor is the submission of atf form 53330.20, certification of compliance with 18 usc 9229g)(5)(b), required.

If submitting a form 1, in block 3b (applicants name), enter "the (your name) revocable living trust" with your address. In block 10 enter your name and the title "grantor and trustee". Leave the reverse side of the form 1 blank.

Remember, if you are submitting a form 4 or form 1 using the either the corporate or estate option, no photographs, fingerprint cards, or law enforcement endorsement are required. Leave these areas blank. Since the fbi fingerprint check is omitted, your turnaround time may be reduced by 30 days or more.

travel and use: do not take national firearms act (nfa) firearms out of state without first checking with the bureau of alcohol, tobacco and firearms (batfe). For machine guns, short barrel rifles, and short barrel shotguns, you will need prior approval from batfe on a form 5320.20 to travel interstate or to permanently move nfa firearms to another state. This protects you from accidentally going someplace where they are banned. If the state you are traveling to allows possession of the type of nfa firearm you own, and you have received prior approval on a form 5320.20 (if applicable), then you can transport the firearm through any state just like any other firearm. That means it must be unloaded and readily inaccessible (in a locked case or trunk of the car). While in a travel status you are afforded the same protection as any other gun owner under the gun owners protection act (gopa 86) law. You cannot be legally arrested for simply passing through a state, county, or township where the guns are banned unless you violate the procedures just described or stop in that state for an extended period of rest. Necessary stops for food, gas, repairs, etc., are allowed. Stopping to site-see, visit friends, or even spend the night, might be construed as an unnecessary delay and place you at risk. Check your state and local laws for other restrictions that may apply regarding hunting, concealed carry, or self-defense with an nfa firearm.

...........

 

[Intoodeep]

temporary transfers: national firearms act (nfa) firearms may be left for repair with an authorized person (dealer, gunsmith, manufacturer) without filing any federal paperwork (check your state and local laws for any restrictions). The bureau of alcohol, tobacco, firearms and explosives (batfe) advises owners to first file a form 5 before doing this. The form 5 was designed for the purposes of inheritance, government acquisition, or to transfer a deactivated firearm. It looks very similar to the form 4, the main difference being that no tax is paid. However, law enforcement endorsements, photographs, and fingerprint cards are required (unless waived by batfe). As a result, the form 5 is a bit awkward for purposes of repair. If you are taking the firearm to someone local and reputable, and the repairs won't take a very long time, then a form 5 may seem pointless. If you are shipping the firearm to someone you don't know, it might be best to use the form 5 as an audit trail. Indeed, some companies won't accept nfa firearms without an approved form 5. Use your best judgment.

transferable firearms: national firearms act (nfa) firearms that can be transferred to private citizens on a tax paid form 4 are the most desirable and therefore the most expensive ones to acquire. They are often referred to as "fully transferable". Nearly all nfa suppressors, short barrel rifles, short barrel shotguns, and aows are transferable. The number of registered machine guns that are transferable was frozen in 1986. Included in this category are the following machine guns:

Original or converted machine guns, whether foreign or domestic, if added to the federal registry prior to enactment of the gun control act of 1968 (gca 68).

Deactivated war trophies (dewat) that were registered prior to enactment of the gca 68. Dewats can be reactivated after payment of the $200 federal transfer tax and approval by the bureau of alcohol, tobacco, firearms and explosives (batfe).

Domestically manufactured or remanufactured guns that were registered after the gca 68 enactment, but prior to the enforcement date of the gun owners protection act of 1986 (gopa 86) on may 19th, 1986. This includes registered receivers, sears, bolts, or other parts accepted by batfe.

Imported guns that were remanufactured into machine guns prior to the gopa (may 19, 1986). This includes registered receivers, sears, bolts, or other parts accepted by batfe.

curios and relics: some states allow private ownership of machine guns only if they are listed as curios & relics by the federal government. Examples would include original thompson 1921 or 1928 submachine guns, and early production m-16 rifles. The curios & relics list is periodically updated and you can petition for particular guns to be added. Normally a gun is accepted to the list if the federal government determines it is of some historic value or of such an age or rarity that it is unlikely to see criminal use. Collectors who possess a curios & relics federal firearms license (c&r ffl) can purchase these guns out-of-state, with prior payment of the applicable transfer tax and approval by the bureau of alcohol, tobacco, firearms and explosives (batfe).

pre-may dealer sample: machine guns imported after 1968 and prior to may 19, 1986, are transferable to federal firearms license (ffl) dealers (01) and manufacturers (07) and importers who have paid the special occupational tax (sot) for the current year. A dealer who acquires a "pre-may" dealer sample and then fails to pay the sot in succeeding years may retain the gun in his private collection. It only can be transferred to someone holding a sot or to an approved government agency, usually military or law enforcement. An exception is made sometimes if the gun is being inherited from the dealer's estate by a family member.

post-may dealer sample: any machine gun manufactured or imported after may 19, 1986, can be transferred between special occupational tax (sot) payers only if they first provide a letter on agency letterhead showing that a legitimate government organization has requested to see it. This usually means a law enforcement agency or military unit. The gun can be retained by the dealer/manufacturer only so long as he pays his annual sot. If he drops the sot, the bureau of alcohol, tobacco, firearms and explosives (batfe) expects him to first dispose of, surrender, or destroy the gun. It can be transferred only to another sot payer or approved government agency, as previously described.

privately building nfa firearms: provided there is no state or local restriction, you can build your own national firearm act (nfa) firearm if you receive prior approval from the bureau of alcohol, tobacco, firearms and explosives (batfe) on a tax paid form 1. Along with the form 1, you must include fingerprint cards, law enforcement endorsement, and a drawing of the firearm. Machine guns will not be approved. Only suppressors, short barrel shotguns, short barrel rifles, and firearms categorized as any other weapon (aow) will be approved. In all cases, the tax will be $200 per firearm. Once approved, they will be treated as any other fully transferable nfa firearm.

In an effort to assist our members to be better informed I have re-posted with permission.
Thank you, Bill Kohnke of PALADIN ARMORY

 

[HappyRoman]

Ok, you really believe that many of us would read all of this text, wow..
If you know of specific points that need our attention please highlite in yellow or pink, or orange.. something to help.. after paragraph 3 I moved on..
Thanks, but help is what is appreciated..

 

[Ravenous]

The name of this thread is, "The devil is in the details" and you are telling the op he should summarize it or highlight key points? It is worth reading the whole thing if you want to be sure all actions are lawful.

Thanks for the information! It is very much appreciated.

 

[Intoodeep]

If this just helps one member better understand the laws it will be well worth it. Too often people make bad choices out of a lack of knowledge. Most violations that are used to condemn the law abiding firearm community are committed by people who just do not know, this will help point them in a positive direction where to get more informed.

 

[Outrider]

Ok, you really believe that many of us would read all of this text, wow..
If you know of specific points that need our attention please highlite in yellow or pink, or orange.. something to help.. after paragraph 3 I moved on..
Thanks, but help is what is appreciated..

-You can lead a horse to water, but you can't make him drink...

 

[Trlsmn]

I would also add that this 'is' a summary of the laws!

10 minutes of time spent reading this is not much to expect out of a responsible gun owner.

 

[HalfNutz]

Ok, you really believe that many of us would read all of this text, wow..
If you know of specific points that need our attention please highlite in yellow or pink, or orange.. something to help.. after paragraph 3 I moved on..
Thanks, but help is what is appreciated..

Really? Wow, talk about promulgating the stereotypical 'gun nut' as portrayed by the mainstream media.

Fine... there are some of us that have the attention span of a gnat.

I'm grateful to the OP for the information provided.... lots of information that I was not aware of.

Thank you for posting.

 

[Ranb]

Ok, you really believe that many of us would read all of this text, wow....

This is a perfect example of why we have to live with so many restrictions in our country. Very few people want to learn, they just want to be told what to do. Many gun owners are no different it seems. I have been trying to drum up support for bill 1604 (allow silencer use in WA) but other than several individuals that have been very helpful, not much is happening. This is why the bill keeps dying in committee and most of the bill co-sponsors in Olympia couldn't give a rat's *** about it.

Ranb

 

[PDXSparky]

-You can lead a horse to water, but you can't make him drink...

I would also add that this 'is' a summary of the laws!

10 minutes of time spent reading this is not much to expect out of a responsible gun owner.

+1 to both of those posts.

 

[MechanicWithAGlock]

the problem is not that the people dont want to read the problem is most of these are written out to read like stereo instructions long and lots of fancy words when they could easily summarize it even short instead they right it like old english and say no shotgun of barrel length less then 20 inchs shall be sold in a place of firearms sales. mind you i made most that up but thats more or less the jyst of the problem with trying to read all this

 

[CleverName]

I noticed in the "Privately building NFA firearms" section is says that a drawing of the weapon to be built must be included along with the paperwork. What the heck is that about? Thats the first I've ever heard of that.

 

[jbett98]

They want a blueprint of what you are proposing to build.

 

[Redcap]

tl;dr

 

[Ranb]

If you are making an NFA firearm on the ATF form 1, it is not a prototype. Do not send the ATF any drawings or plans. I never have and the ATF has not failed to approve 14 tax stamp applications for me so far. All they need is the model, serial number, barrel length (N/A for silencers) and overall length.

Ranb

 

[SporkBoy]

This is a perfect example of why we have to live with so many restrictions in our country. Very few people want to learn, they just want to be told what to do. Many gun owners are no different it seems. I have been trying to drum up support for bill 1604 (allow silencer use in WA) but other than several individuals that have been very helpful, not much is happening. This is why the bill keeps dying in committee and most of the bill co-sponsors in Olympia couldn't give a rat's *** about it.

Ranb

Pardon my necro ... I did read!

Can we work on getting knives sorted out?