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Special (Occupational) Taxpayers (SOT) under the NFA are exempt from some of the making or transfer taxes. All SOT holders may transfer weapons between themselves tax free. However a transfer between an individual and a SOT will require the tax. And unless one has a class 2 SOT, there is a tax on making an NFA weapon, except for making by or on behalf of a government entity. Sole proprietor SOT’s need not get the law enforcement certification for any transfer, except DD’s (unless they have the appropriate FFL), even for their own personal collection, although in that case they should pay the $200 transfer tax. They also need not attach a photo to the transfer paperwork, nor submit fingerprints. The Crime Bill (9/14/94) now requires these things with FFL applications, and SOT applications, however, and ATF was requiring them even before that became law, since early 1994. If one plans to engage in business in NFA weapons, one needs to be a SOT, just as one needs the FFL if they plan to engage in the business with regular firearms or ammunition.

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A sole proprietor SOT may keep any NFA weapon he has after surrendering his SOT, as his personal property, except post-86 machine guns, discussed below.

camouflage » Blog Archive »
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Note that the silencer definition applies only to devices for firearms, i.e. powered by an “explosive”. An air gun silencer is not covered. But if it can be used on a firearm it would be. Thus an airgun silencer permanently attached to the airgun, or too flimsy to be used on a firearm, should be exempt. If you have an interest in pursuing this line of thought submit a sample or drawings to ATF Tech. Branch. I am not aware of any airgun silencer currently made, or determined to be exempt from this definition. But clearly there is room under the definition for such a gadget. Likewise, since antique guns, as defined in the GCA are not “firearms”, a silencer for such a gun is not, or should not be, covered. Perhaps one fitted permanently to a pre-1899 gun? The mind reels.

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Gun accessories for you AR-15 and 10/22 » 2007 » September
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ATF Forms and Descriptions, by Category and Number
This information is correct as of 20 February 1995; compilation is copyright (c) 1995 by Trenton J. Grale. Permission is granted herein to copy and distribute this document, in whole or in part, with attribution, for noncommercial and nongovernmental use only.

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Folks who are around NFA guns for very long will find there are still a lot of DEWAT guns that were never registered during the Amnesty, and are now contraband unregistered machine guns. Folks have them in closets, up over the mantle… They can be stripped of parts, to make a parts set, and have the receiver thrown away. Torch cutting the receiver into 4 or more parts may be acceptable; you would have to contact ATF to find out the current standard for “de-mill”ing (short for demilitarize) a receiver; a de-milled receiver is not a firearm, it is scrap metal. A receiver only cut in half may well not be scrap; ATF has prosecuted folks where they could duct-tape together the receiver and get the gun to fire. Best to check on this before proceeding. The U.S. v. Staples, – U.S. – (1994), decision should end such ridiculous prosecutions, now the feds must prove, beyond a reasonable doubt, you knew the gun was subject to the NFA, ie you knew it was a machine gun, that it could fire more than one shot with a pull of the trigger, and so on. But even if there were no prosecution, you could lose the receiver and or parts to a forfeiture, if ATF though it was in fact a machine gun, and it was not registered.

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Tax exemptions
Law enforcement, states, and local governments are totally exempt from the making and transfer (either to or from) taxes, but must comply with the registration requirements. While the NFA only specifically provides that there is no transfer tax due when the US government is the transferee, (26 USC sec. 5852(a)), or a state governmental entity (26 USC sec. 5853(a)), ATF has made up an exemption from the transfer tax where any US or state governmental entity is the transferor, see ATF Chief Counsel Opinion numbers 20023 and 20400. Abuse of that exemption, as in transferring guns through governmental entities so as to avoid transfer taxes, has been prosecuted. See U.S. v. Fleming, 19 F.3d 1325 (10th Cir. 1994).

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This certification is not really a big deal for the chief law enforcement officer (CLEO) making it, and it DOES NOT expressly make the CLEO legally responsible for the weapon or your use of it, or its theft. I have not heard of any successful case against a CLEO for signing the certification for a gun that was criminally misused. That is, in my opinion, a spurious excuse for not signing. There is even a case addressing this issue, Searcy v. City of Dayton, 38 F.3d 282 (6th Cir. 1994). The estate of a drug dealer murdered by an off duty Dayton, Ohio, police officer with his personally owned “Mac-11″ machine gun sued the city that employed the cop. One of the grounds for suit was the police chief’s having signed the transfer paperwork for the murder weapon. The court held that that claim should have been dismissed by the trial court; without a showing that somehow the act of signing was negligent, (under Ohio law) and led to the harm (murder) complained of, there was no cause of action. Signing the form was not negligent in itself, nor was it a reckless or wanton act, as the trial court claimed the plaintiff could try to prove at trial. Although this case is only directly binding on the area of the 6th circuit, and need not bind state courts, the court recognized what common sense, and the certification say, the person signing does not open himself up to any liability by doing so.

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As can be seen this covers improvised sound suppressors, and component parts of a sound suppressor. There is no thresh hold level of sound reduction for something to fall under this definition. ATF used to require the device “appreciably” lower the sound (see Revenue Ruling 57-38); now the working definition seems to be anything that traps gas from the muzzle of the gun, or from porting of the barrel, is a sound suppressor. In general recoil compensators and flash hiders do not fall under this definition, but some designs could fall into the category. As with any borderline device the thing to do is to get a written opinion from the Technology Branch of ATF. It is what they exist to do.

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Federal government agencies, the military, and National Guard need not comply with the registration or tax requirements, and generally speaking NFA Branch removes weapons from the Registry once they are transferred to the federal government.

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Before the NFA was changed in 1968, as part of the Gun Control Act of 1968, one could register unregistered existing weapons, however it meant you were admitting to possessing an …

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Tax exemptions Law enforcement, states, and local governments are totally exempt from the making and transfer (either to or from) taxes, but must comply with the registration …

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The original of the paperwork, particularly any that have tax stamps on them (Form 1 or 4) should be kept in a safe place. ATF can demand to see the form (see below on your 4th …