Articles Posted in Form 1 – 5320.1 Manufacture

We are often asked if you have to be 21 to build an SBR or Suppressor.  If you are manufacturing a firearm under the NFA using an ATF Form 5320.1  you only need to be 18 under federal law.  Likewise, if you are purchasing a firearm using an ATF Form 4 from an individual, trust, or non FFL you only need to be 18 years old.  If you are buying one from an FFL, you must be 21 years old under federal law.  Your state may impose stricter requirements.

Below is an excerpt from the attached letter  from ATF explaining the age requirement.

This is in response to your letter of November 16, 2006, to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) advising that you are 18 years of age, the owner of a AR-15 type receiver, and wish to register it has a short-barreled rifle using an ATF 1 application.You ask whether ATF would approve the application submitted under these circumstances.

You state that your understanding of the Gun Control Act prohibits the transfer of Short Barreled Rifles, but that you cannot find any language in the GCA nor the NFA dealing with the already possessed rifle receiver. You are correct. The GCA does establish age requirements for the sale of firearms by licensees and the NFA is silent on age restrictions.

Accordingly, since the GCA does allow possession of rifles by persons under the age of 21, you would not be prohibited from applying on a Form 1 to make a short-barreled rifle.

While an application by an individual would need photographs and a certification from your chief of police or sheriff, an application using a Gun Trust would not.

Form1-18yr-old

 

 

While this may seem obvious, we regularly get asked this question.   YES, when using the ATF eFiling for a Fom1, a signed copy of your gun trust must be uploaded.  The maximum file size that can be attached is 3MB but you can upload multiple files if necessary.  We recommend scanning your gun trust at 200 DPI in black and white or grayscale to keep the file size small.  If you find that the file size is still over 3MB, you can separate the documents into several parts which can each be uploaded. In addition to the trust document, you must also submit all amendments which have been executed at the time of the filing, any schedules mentioned in the document like Shedule A, Sechedule B, lists of beneficiaries, list of co-trustees, and in most cases a Schedule A or Assignment sheet showing the trust has been funded is also required.

A word of caution about Gun Trusts that use a Schedule A to list firearms.

If your gun trust uses Schedules like a Schedule A to list the firearms, it may not be wise to include your non NFA firearms in the trust as you will end up sending the ATF a list of all of your firearms.  Gun trusts that use assignment sheets are generally preferable to others because of the ability to maintain the privacy over your non NFA firearms.

While many people initially consider the use of a gun trust for NFA firearms, many of the same benefits exist for Title I firearms or those subject to the GCA.  As we do not know who will survive us, where they will live, if they will be prohibited, or if they will be mature and responsible enough to have firearms after our death (we are not there to make those decisions) traditional estate planning can create problems for our family and friends.

Some trusts which are marketed as NFA trusts or gun trusts do not provide guidance on how to transfer NFA or Non NFA firearms and leave those decisions up to the individuals who survive you.  You should carefully review your trust to make sure those who will survive you will clearly be able to understand their duties and obligations.

Thumbnail image for sig_arm_brace_sb15.jpgWe are all familiar with the inconsistency of the ATF. The ATF has changed their position on the Sib Brace (SB-15) with a pistol. While the ATF, still states that it is legal to use the SB-15 as intended (strapped to your wrist), they have reversed their position on using the SB-15 when shouldered.

You may remember that earlier this year, ATF stated that since the SB-15 is not intended to be fired from the shoulder, the misuse of an individual would not change the classification of the firearm. See the March ATF SB-15 letter

We believe that this is the correct decision and interpretation. The problem is that someone else recently asked the same question and got a very different answer. ATF has now stated that the misuse of the SB-15 (being fired from the shoulder) does create an SBR and make the pistol subject to the NFA.

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This is another one of those issues where the answer is not can you do but what should you do. Technically, you do not have to have a copy of your Form 1 or Form 4 for anyone other than the Attorney General, the ATF or an agent or investigator upon request.

Some recent case law has stated that a police officer is not an investigator or agent or the ATF and as such has no right to request to see your ATF form. I cannot believe the amount of money and or the risk that the individual took when a copy of the document on your cell phone or in your gun bag would have avoided the issue. In addition, there is nothing to state that a judge in your state or where you are asked for the paperwork would rule the same way.

The NFA requires that a person possessing a firearm registered in the National Firearms Registration and Transfer Record (NFRTR) retains proof of registration which must be made available to the Attorney General, specifically an ATF agent or investigator, upon request.

So the answer is you might not need to if you are willing to spend months and thousands of dollars should you be arrested, but the smart move would be to have a copy with you to avoid all the potential problems.

ATF is pleased to announce the availability of revised ATF Form 1, Application to Make and Register a Firearm, and ATF Form 5, Application for Tax Exempt Transfer and Registration of Firearm.

The ATF Form 1 has been revised to allow the payment of the making tax by use of a credit or debit card. This is a new option that was requested by the industry. Payment by check or money order will still be allowed when the application is submitted on paper.

The Form 1 and Form 5 have been revised to incorporate the questions relating to non-immigrant status that are contained in ATF Form 5330.20, Certification of Compliance with 18 U.S.C. 922(g)(5)(B). Form 5330.20 is to be submitted when the applicant maker is an individual, not a legal entity. With a submission of the revised Form 1, the submission of Form 5330.20 will not be required. This revision was also requested by the industry.

For eForm filings, the prior version of the Forms 1 and 5 will continue to be used until we are able to update the form versions in the eForms system. Since the eForm 1 may only be filed by legal entities or government agencies and the eForm 5 is for transfer by a qualified Federal firearms licensee when the transferee is a government agency, the answering of the questions is not required as they are for an individual applicant maker or transferee.

When these forms become available we will post links to them and provide instructions for completeing them.

You need to timely dispute the ATF denial. ATF is denying these applications under 922 (O) (1)

Except as provided in paragraph (2), it shall be unlawful for any person to transfer or possess a machinegun.

But if you read the section 922 (O) (2) (A), the exception, states that:

a transfer to or by, or possession by or under the authority of, the United States or any department or agency thereof or a State, or a department, agency, or political subdivision thereof; or

An approved Form 1 is under the authority of the United States or a department or agency thereof.

Is ATF claiming they are not an agency or department of the United States? Interesting, but they would have a hard time explaining this.

If you would like help filing your appeal, contact us ASAP before your right to appeal the wrongful denial cannot be appealed.

Note and Disclaimer: This is unsettled law, and there is no guarantee that you will be approved in an appeal of your denail

We understand that ATF has approved a number of applications to permit Gun Trusts to manufacture machine guns and then rescinded the tax stamp to make the machine gun.

Many others have reported to us today that their Form 1 was disapproved by the ATF with the following reason:

Reasons For Disapproval

THE GUN CONTROL ACT OF 1968 (GCA), AS AMENDED, PROHIBITS ANY PERSON FROM POSSESSING A MACHINEGUN NOT LAWFULLY POSSESSED AND REGISTERED PRIOR TO MAY 19, 1986. SEE 18 U.S.c. § 922(0). THE GCA DEFINES THE TERM “PERSON” TO “INCLUDE ANY INDIVIDUAL, CORPORATION, COMPANY, ASSOCIATION, FIRM, PARTNERSHIP, SOCIETY, OR JOINT STOCK COMPANY.” SEE 18 U.S.c. § 921(A)(1). PURSUANT TO THE NFA, 26 U.S.c. § 5822, AND IMPLEMENTING REGULATIONS, 27 C.F.R. § 4 79.105(A), ATF MAY NOT APPROVE ANY PRIVATE PERSON’S APPLICATION TO MAKE AND REGISTER A MACHINEGUN AFTER MAY 19, 1986.

THE FACT THAT AN UNINCORPORATED TRUST IS NOT INCLUDED IN THE DEFINITION OF “PERSON” UNDER THE GCA DOES NOT MEAN THAT AN INDIVIDUAL MAY AVOID LIABILITY UNDER SECTION 922(0) BY PLACING A MACHINEGUN “IN TRUST.” CONSEQUENTLY, IN TERMS OF AN UNINCORPORATED TRUST, ATF MUST DISREGARD SUCH A NON-ENTITY UNDER THE GCA AND CONSIDER THE INDIVIDUAL ACTING ON BEHALF OF THE TRUST TO BE THE PROPOSED MAKER/POSSESSOR OF THE MACHINE GUN.

It would seem that the ATF does not consider their approval to be governmental authority. The personal possession has an exception that deals with machine guns under the authority of the government.

If you received an approval and it was receinded and would like to explore your options please contact us.

I recently published an article on Gun Trusts and an amazing 1 day approval. I felt that this was an unusual circumstance and decided to submit an electronic ATF Form 1 back on July 26th using my personal Gun Trust to test out the current time for approvals on using a Trust from a Gun Trust Lawyer®.

While I was not surprised to have not received an approval on July 27th, I have been checking the status regularly. I was surprised to receive an approval early Saturday morning August 2, 2014. This approval was not anywhere as quick as our clients 1 day approval, but only took 35 days to get approved which is amazing considering that many are reporting 9-14 months for a paper approvals. Not only was the approval quick, but the email notification came with an attachment which contained a copy of my Form 1. The process for printing the approval was more complex than it needed to be and I guess that the ATF decided they could cut down on the amount of communication and support by just sending a copy. A wise move by the ATF.

Please let us know about your approval times so we can see if others are experiencing similar results.

Recently, I had an electronic version of a Form 1 approved by the ATF for my Gun Trust and wanted to clarify what is required for engraving.

ATF 5300.4

In 27 CFR 479.102 (page 92) describes what is necessary to engrave on a SBR or SBS when one is manufacturing. This is not necessary if you purchase one that is already manufactured as it will have been done for you.

1) On the Frame or Receiver the Serial number;
2) on the frame, receiver, or barrel the following additional information;
A)The model;
B)The caliber or gage;
C)Your name or name of the Trust in the case of a Trust (no abbreviations are permitted for the Trust name);
D)The city and state (you can abbreviate the state with the official 2 digit state code)

The above mentioned information must be engraved, casted, stamped (impressing) or otherwise conspicuously placed or caused to be engraved, cast, stamped (impressed) or placed to a minimum depth of .003 inch and in a print size of the Serial number shall be no smaller than 1/16 inch.

As an interesting side note, my gun was manufactured in Jacksonville, FL so the city and state were already engraved. When I asked ATF, if I needed to engrave Jacksonville, FL, they said yes and pointed me to an ATF Ruling on adopting identification of FIrearms from 2013.

Based on the ATF letter requiring NICS checks for Trusts, the ATF may have accidentally opened the registry for new Machine Guns when registered in the name of a trust which is not a person under the GCA.

The Prince Law Blog quotes the same letter I wrote about a few days ago where the ATF determined that “Unlike individuals, corporations, partnerships, and associations; unincorporated trusts do not fall within the definition of “person” in the GCA.” And therefore, as a result,

Because unincorporated trusts are not “persons” under the GCA, a Federal firearms licensee (FFL) cannot transfer firearms to them without complying with the GCA. Thus, when an FFL transfers an NFA firearm to a trustee or other person acting on behalf of a trust, the transfer is made to this person as an individual (i.e., not as a trust). As the trustee or other person acting on behalf of the trust is not the approved transferee under the NFA, 18 U.S.C. 5812, the trustee or other person acting on behalf of a trust must undergo a NICS check. The individual must also be a resident of the same State as the FFL when receiving the firearm.

So, ATF, trying to be cute and find a way to require NICS checks without Congressional action, declared trusts not to fit the definition of a “person” under the GCA. No big deal, especially for us in Pennsylvania, as Pennsylvania Instant Check System (PICS) checks are already required for all NFA firearms, except silencers. But, not so quick…let’s look at Section 922(o) of the Gun Control Act…

Section 922(o) provides:

(1) Except as provided in paragraph (2), it shall be unlawful for any person to transfer or possess a machinegun.
(2) This subsection does not apply with respect to-
(A) a transfer to or by, or possession by or under the authority of, the United States or any department or agency thereof or a State, or a department, agency, or political subdivision thereof; or (B) any lawful transfer or lawful possession of a machinegun that was lawfully possessed before the date this subsection takes effect.

So, we have a prohibition on any “person” transferring or possessing a machinegun which was not lawfully registered before May 19, 1986. BUT, an unincorporated trust is not a “person” under the GCA, so this provision cannot apply to it.

In turning to the National Firearms Act, as amended, 26 U.S.C. 5801, et seq., we find that a “person” is defined as including a trust, pursuant to 26 U.S.C. 7701. Yet, there exists no 922(o)esque provision in Section 5801, et seq.

Therefore, pursuant to 26 U.S.C. 5812 and 5822, an unincorporated trust may lawfully transfer and make machineguns, as it is not a “person” for purposes of the GCA and Section 922 only applies to “persons” as defined by the GCA.

Before anyone rushes to complete a Form 1 to make a new machine gun, they should understand that the ATF will likely reject this and if they want to push the issue they should be expect to litigate the issue. Even if litigating there is no guarantee of prevailing.

That being said, I believe I will submit a Form 1 for permission to manufacture a new machine gun along with a memo regarding the issues so that the opportunity to litigate the issue would be available after an expected rejection.

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