Recently in Title 1 Firearms Category

June 26, 2014

ATF eForms Approval for Gun Trust in only 1 Day

1daydates.jpgOne of our clients submitted an application to build a Form 1 on June 24, 2014 and was surprised when they checked their email the next morning and found that the ATF had approved the application to build the SBR.

When I first received the call, I thought it was a mistake, but then I walked the client through the Atfonline website and the process of printing the electronic Form 1. I have provided a copy for those who are as skeptical as I was about a 1 day approval process on a Form 1 from the ATF.

Not sure if this was a mistake or the ATF had just cleared out the backlog of Form 1's but if you considering creating a Gun Trust to build an SBR, you may want to do it sooner than later.

Here is a copy of the full Form 1 for those who would like to review it.1dayForm1.pdf

To check out the current time for approvals, I submitted a electronic Form 1 on June 26 and it was approved on August 2, 2014. While 35 days is not bad, it is not overnight.

August 3, 2013

ATF Electronic Forms Available for Form 1, Form 4, and Form 5

ATFonline.jpgFFL holders: get on it so you're squared away for your customers!
Gun Trusts can use this to submit an ATF Form 1 - 5320.1

"NFA eForms are finally here! ATF is pleased to announce the implementation of the NFA forms into ATF's eForms system. ATF Forms 1, 2, 3, 4, 5, 9 and 10 are currently available for eForms submission.

The submission of Forms 2, 3, 4, 5 and 9 can only be done by a Federal firearms licensee who has paid the special (occupational) tax for the current Tax Year.

If the submission of the form requires fingerprints, photographs, and the Law Enforcement Certification, the submission cannot be done using eForms - the application must be submitted on paper to the NFA Branch.

Accordingly, Forms 1, 4 and 5 may be submitted using eForms if the applicant maker or transferee is a legal entity, such as Gun Trust. The submission of the application will require that the documents establishing the Gun Trust be attached electronically to the application.

This means that the entire Gun Trust as well as any exhibits or attachments mentioned in the Gun Trust will need to be electronically attached to the application.

For Forms 1 or 4 that are submitted with making or transfer tax due, the tax payment will be made through Pay.Gov, just prior to the submission of the application. Pay.Gov is a system, of the US Treasury's Financial Management, that allows the submitter to pay the tax by credit/debit card or from a bank account. For detailed information on Pay.gov you can visit their website at www.pay.gov."

To begin the process you will need to register online with a 12 digit or more password that contains a number, upper and lower case letters, and a non alpha numeric character.
ATFonline-register.jpg

It appears you will also need to register with www.pay.gov to make the payment.
While a Gun Trust can only use the Form 1 at this time, Class 3 SOT FFLs can submit forms to transfer firearms to Gun Trusts but not individuals.

A Gun Trust is a term used to describe a revocable or irrevocable trust that has been customized to deal with the unique issues of firearms ownership, transfer, and possession. Many so-called Gun Trusts have significant problems and are little more than regular legal documents that do not deal with all of the issues involved with the purchase, transfer, and possession of firearms including those regulated by the NFA. To be sure you are getting a Gun Trust and not a regular trust you should contact a Gun Trust Lawyer®. If you have a trust that you would like reviewed for the federal issues, we will review them free of charge and let you know if we find significant issues that could cause problems and create criminal liability if the terms of the trust are followed.

Remember that just because the ATF approves a transfer to a trust, it does not make your trust valid or appropriate to use.

November 8, 2012

Should I put my regular firearms in a NFA Trust or Gun Trust?

A Gun Trust should be designed to hold all firearms including those restricted by the NFA. All of our Gun Trusts are designed for all of your firearms. As an owner of all types of guns, I designed this trust to deal with issues from a revolver, to a Glock pistol, and even NFA firearms like silencers and machine guns.

What most people do not realize is that many of the same issues regarding transfer upon death or incapacity exist for regular firearms as well as those sold by Class 3 SOT dealers. It is for this reason that I would suggest putting all of your Guns in one of our NFA Gun Trusts.

The real issue is that while we can pick beneficiaries while we are alive, we do not know who will survive us or anything about them on the date of our death.

We do not know where they will live; in some states regular firearms are highly restricted or prohibited by law. Will some or all of our guns will be permitted in the state where each beneficiary will live at the time of our death?

The legal status of our beneficiaries. Have our kids or friends done something silly that we do not know about that might have caused the beneficiaries to lose their rights to own, possess, or use a gun. Are they involved with drugs in a state where it is legal? While legal in some states, it is still a federal crime and would make a person using illegal drugs (at the federal or state level) a prohibited person. Another issue might involve being charged with an act of domestic violence or child abuse even if not ultimately convicted of the charge. The Lautenberg amendment is a federal statute that says that certain actions by you or your attorney on your behalf that are associated with charges which are classified as domestic violence or child abuse can cause a permanent loss of your firearms rights.

Most importantly, as much as we would like to believe that our beneficiaries will be the right age and have the right mental state when we die, we will not be there to make the decision. Our Gun Trust takes all of this into consideration and allows the successor Trustee to look at the age, make sure they are old enough and of the right frame of mind. Other trusts only require that someone is not determined to be legally incompetent. With firearms this is not enough, someone can be legally sane, but not the person you would want to hand a gun. People change over time, and it is not always for the better.

Our Gun Trust allows all of these issues to be considered and then a decision can be made or the decision can be to wait an addition period of time and reevaluate the beneficiary.

June 1, 2012

Michigan (MI) What NFA Firearms can I own? Updated

Michigan NFA Class 3 firearmsThere are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

Michigan has several laws dealing with the registration, ownership, and possession of firearms that are changing in January 2009.   In Michigan you can own the following items that are regulated the the National Firearms Act:

Machine Guns
Silencers (as of late 2011)
Any Other Weapon (AOW)
Destructive Devices (DD)
Short Barreled Shotguns (SBS) *
Short Barreled Rifles (SBR) *

In Michigan you cannot own the following NFA restricted items.

Some AOW's like Tasers or Stun Guns by private citizens whether or not they are Title II ( Sold by a class 3 dealer) or the individual has a CCW permit. *SBR & SBS are restricted by the Michigan Compiled laws 750.224b(3) which limits these items to C&R, Collectors items not likely to be used as a weapon but only if the person selling, offering, or possessing the firearm also complies with the Michigan Compiled laws 28.422 (will be amended Jan 2009) and 28.429 ( will be repealed Jan 2009).

Follow this link to find out more about Michigan and NFA restrictions on Class 3 Firearms

Silencers status updated 2012

July 22, 2011

Missouri (MO) What NFA Class 3 Firearms can I own?

NFA Class 3 firearms There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Missouri you can own the following items that are regulated the the National Firearms Act

Machine Guns
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
Any Other Weapon (AOW)
Silencers
In Missouri you cannot own the following NFA restricted items.
Destructive Devices (DD)
Follow this link to find out more about Missouri and NFA restrictions on Class 3 Firearms

<strong>NOTE:</strong> Starting 8/28/2011 you will be able to use a NFA trust to purchase NFA firearms in Missouri without the need of a C & R, FFL, or use of a Corporation or LLC.
November 30, 2010

Have NFA Gun Trusts or Revocable Living Trusts Been Successfully Challenged by ATF?

We often get questions regarding the use of NFA Trusts in regards to legal challenges to show that they are permitted under the NFA.

While there are no successful challenges that stand for the positive or negative use of a NFA Trust, Trusts are not generally denied because the Federal statutes specifically authorizes the use of a trust for ownership of a item restricted by the NFA. There have been many applications with the ATF by people using other forms of Trusts that have been denied because the application or the trust was improper.

The more troubling issue with a Trust is that there are many invalid trusts that have been approved by the ATF. The reason this is problematic is that many individuals feel there possession and use of these firearms valid because ATF approved the transfer. They do not realize that the ATF's approval is to a valid trust and while they may disapprove an obviously invalid trust, there is no requirement for the ATF to validate (nor do they validate) a trust.

The approval process does little to shield the individuals from the liability that comes with an improper transfer, possession, and use of a NFA firearm and a Valid Form 4 or Form 1 to an invalid trust does not protect your right to ownership, use, or possession of NFA firearms.

The traditional estate planning trust and many so called gun trusts do not deal with the NFA and actually instruct individuals to break the law in regards to transfer, possession, and use of the restricted firearms. This is why it is important to have a professionally drafted trust that is specific to the NFA and actually guides you, your family and beneficiaries thought the correct process of determining what to do in the case of your incapacity or death depending on the individual circumstances that exist at that time.

For more information on how a NFA Gun Trust can protect you and your family from violations of the NFA Contact a NFA Gun Trust Lawyer® in your state or a Florida Gun Trust Lawyer®

August 12, 2008

NFA Firearms and Criminal Penalties

Violations of the NFA are punishable by 10 years in prison, forfeiture of all devices or firearms in violation, and the individuals right to own or possess additional firearms in the future.  In addition, there is a penalty of $10,000 for each of certain violations.

In addition, a willful attempt to evade or defeat a tax imposed by the National Firearms Act is also a felony which is punishable by up to 5 years in Jail and a $100,000 fine under the tax evasion statutes.  This penalty could be increased to $250,000 for individuals and $500,000 for corporations.

This means you could be looking at a maximum of 15 years in Jail and $510,000 in penalties for a violation.   Many violations can be avoided by proper ownership and knowing who can be in possession and use the Title 2 firearms which are restricted under the NFA.

There may be additional state penalties in addition to the federal one mentioned above.  A properly constructed NFA trust is the best way to own these items and permits the best flexibility as to possession and use.  Although a Revocable trust can provide benefits many individuals create invalid trusts or trusts that do not address the specific issues that relate to NFA weapons ownership and subject themselves to potential violations. 

To create a Valid NFA Firearms Trust that addresses your specific family situation, please CONTACT A NFA lawyer.
June 5, 2008

Arkansas (AR) What NFA Firearms can I own?

Oregon NFA Class 3 firearms

There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Arkansas you can own the following items that are regulated the the National Firearms Act

Machine Guns
Silencers
Any Other Weapon (AOW)
Destructive Devices (DD)
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
In Arkansas you cannot own the following NFA restricted items.
None

Follow this link to find out more about Arkansas and NFA restrictions on Class 3 Firearms

May 21, 2008

What about my unregistered NFA Firearms?

An individual, business, or NFA Firearms trust may not register an unregistered NFA firearm.  Only a manufacture, maker, and importer can register a firearm.

Possession of an unregistered NFA firearms is a crime.  The ATF states that if you are in possession of a contraband firearm, you should contact the nearest ATF office to arrange for its disposition.

WARNING - although this is the advise of the AFT, they also state that mere possession is unlawful
May 8, 2008

Alabama (Al) What NFA Firearms can I own?

NFA Class 3 firearms
There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Alabama you can own the following items that are regulated the the National Firearms Act

Machine Guns
Silencers
Short Barreled Shotguns (SBS) (After 7/5/10)
Short Barreled Rifles (SBR) (After 7/5/10)
Any Other Weapon (AOW)
Destructive Devices (DD)
In Alabama you cannot own the following NFA restricted items.

Short Barreled Shotguns (SBS) (Before 7/5/10)
Short Barreled Rifles (SBR) (Before 7/5/10)

Follow this link to find out more about Alabama and NFA restrictions on Class 3 Firearms

Updated 4/22/2010 SBR/SBR made legal in Alabama under act 2010-496 effective (After 7/5/10)

May 7, 2008

Alaska (AK): What NFA Firearms can I own?

NFA Class 3 firearms
There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Alaska you can own the following items that are regulated the the National Firearms Act

Machine Guns
Silencers
Any Other Weapon (AOW)
Destructive Devices (DD)
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
In Alaska you cannot own the following NFA restricted items.
None

Follow this link to find out more about Alaska and NFA restrictions on Class 3 Firearms

May 6, 2008

Arizona (AZ) What NFA Firearms can I own?

NFA Class 3 firearms
There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Arizona you can own the following items that are regulated the the National Firearms Act

Machine Guns
Silencers
Any Other Weapon (AOW)
Destructive Devices (DD)
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
In Arizona you cannot own the following NFA restricted items.
None

Follow this link to find out more about Arizona and NFA restrictions on Class 3 Firearms

May 5, 2008

Colorado (CO) What NFA Firearms can I own?

Colorado NFA Class 3 firearms
There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Colorado you can own the following items that are regulated the the National Firearms Act

Machine Guns
Silencers
Any Other Weapon (AOW)
Destructive Devices (DD)
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
In Colorado you cannot own the following NFA restricted items.
None

Follow this link to find out more about Colorado and NFA restrictions on Class 3 Firearms

May 4, 2008

National Firearms Act - 26 U.S.C. Chapter 53

THE NATIONAL FIREARMS ACT
TITLE 26, UNITED STATES CODE, CHAPTER 53 INTERNAL REVENUE CODE

The National Firearms Act (NFA) is part of the Internal Revenue Code of 1986. All administration and enforcement of the Internal Revenue Code, with the exception of the NFA, is by the Secretary of the Treasury. The ATF administration and enforcement was transferred to the Department of Justice under the Homeland Security Act of 2002.

Teh Attorney General is now in charge of all administration and enforcement of the NFA, were transferred to the Attorney General. The definition in Section 7801(a)(2), Title 26, V.S.C., we changed to provide that references to the term "Secretary" or "Secretary of the Treasury" in the NFA shall mean the Attorney General.

Chapter 53 - Machine Guns, Destructive Devices and Certain other Firearms is broken in to several sections
sub-chapter A Taxes
Part I Special Occupational Taxes

§ 5801 Imposition of Tax
§ 5802 Registration of importers, manufactures, Dealers
Part II - Tax on transferring firearms
§ 5811 Transfer Tax
§ 5812 Transfers
Part III - Tax on making firearms
§ 5821 Making Tax
§ 5822 Making
sub-chapter B General Provisons and Exemptions
Part I - General Provisions
§ 5841 Registration of firearms.
§ 5842 Identification of firearms.
§ 5843 Records and returns.
§ 5844 Importation.
§ 5845 Definitions.
§ 5846 Other laws applicable.
§ 5847 Effect on other laws..
§ 5848 Restrictive use of information.
§ 5849 Citation of chapter.
Part II - Exemptions.
§ 5851 Special (occupational) taxes.
§ 5852 General transfer and making tax exemption.
§ 5853 Transfer and making tax exemption available to certain governmental entities.
§ 5854 Exportation of firearms exempt from transfer tax.
sub-chapter C - Prohibited Acts
§ 5861 Prohibited acts.
sub-chapter D- Penalties and Forfeitures
§ 5871 Penalties.
§ 5872 Forfeitures.
Download The National Firearms Act in PDF

May 4, 2008

Florida (FL) What NFA Firearms can I own?

Florida NFA Class 3 firearms
There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Florida you can own the following items that are regulated the the National Firearms Act

Machine Guns
Silencers
Any Other Weapon (AOW)
Destructive Devices (DD)
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
In Florida you cannot own the following NFA restricted items.
None

Follow this link to find out more about Florida and NFA restrictions on Class 3 Firearms