Articles Posted in Form 4 – 5320.4 Transfer

North Carolina NFA Trust and Gun Trust Update:

In Dec 2014, a Gun Trust transfer of a Machine Gun was rejected by the ATF when it stated “In Accordance with NC General Statute 14-409. Please remember that your Form 4 must state a reason other than for scientific and/or experimentation or “in accordance with 14-409″ to comply with The January 11, 2013 email from Dana Pickles. We are in the process of verifying this and will update this blog if anything changes.

A recent email from Dana Pickles at the US Dept. Of Justice Bureau of ATF NFA Branch stated the following changes for North Carolina
Effective January 11 2013 the ATF is handling North Carolina transfers as follows:

Machine Gun transfers from a dealer to a dealer on a Form 3 no longer require a North Carolina Sheriff permission letter to possess the Machine Gun (MG)

From a Dealer to a Gun Trust using a Form 4.
If the Form 4 states that the MG is being “acquired for scientific research and/or experimentation” or “in accordance with 14-409″, then you will still need North Carolina Sheriff permission letter to possess Machine Gun.

But, If the reason on your Form 4 states a reason OTHER than “in accordance with 14-409″ or “for scientific and/or experimental use” then the North Carolina Machine Gun Letter or permission from the Sheriff is not required.

This means you should not state “in accordance with 14-409″ or “for scientific and/or experimental use” on a Machine Gun transfer in the state of North Carolina
All other NFA transfers on a Form 4 – no longer require the reason to state “In accordance with 14-288.8″ to approve the transfer.

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_Logo.jpgUsing an eForm to file your Form 1 or Form 4 can save several months processing time. We have seen that it can reduce the time from 9-12 months to 3-6 months. As we have outlined before, the ATFonline.gov website is not the easiest to use or understand and thus there have been many questions which ATF has attempted to address in this guide.
On January 15, 2015 the ATF released a new version of this Guide

The Topics covered include:

How Do I Register To Use eForms?
FFL, EIN and AECA Associations Password Complexity Rule Missing from eForms Registration Instructions Navigating through eForms Icons/Buttons/Symbols Used in eForms Adding Attachments to eForms Submissions Who Can Submit An eForm 1 Or eForm 4 eForm Down Everyday At NOON -1:00PM Eastern Time For Maintenance Make Sure Your Submissions Are Correct How to Identify the Applicant Maker or Transferee on an eForm 1, 4 or 5.
eForms Refund Processing Identification of the maker or manufacturer of a firearm on Form 1 Payment of Making or Transfer Tax Duplicate Applications in Your Draft Folder – Dont delete them NFA – PDF issue with Form 4 Average Processing Times What are those ‘non eForms’ records that appear in my folders?
Name Field Length Limitation Forms 1, 4 and 5 Use of P.O. Boxes

It’s important to do electronic forms correctly the first time as there is not currently a way to fix a mistake or amend them like with the paper applications.

atf-logo.jpgThe ATF told attendees at the NSSF Import/Export conference that they had hired 12 temporary research assistants and a supervisor to review Form 4 and Form 1 applications for mistakes before the examiner gets them. (Reported by Joshua Prince at the Prince Law Firm a PA Gun Trust Attorney)

Back in April the backlog on Form 1 and Form 4 transfers was around 43000. The additional staff has almost doubled the number of transfers per month that the agency can handle. The ATF is also asking Congress to use part of the revenue generated to help update their antiquated systems as currently the taxes collected from the Form 4 and Form 1 applications is deposited into the Treasury’s account where the ATF has no access.

Apparently if a FFL submits a Form 1 or Form 4, their applications are put in a special folder for special processing because the background of the FFL has already been checked.

ATF receives numerous telephone and electronic inquiries on a daily basis. In an effort to provide individuals with the most up-to-date information, ATF has compiled a list of the top 10 most frequently asked questions and provided answers to those questions. Several of the questions deal with the manufacture, sale, use, and transfer of firearms subject to the NFA.

  1. Can a person prohibited by law from possessing a firearm acquire and use a black powder muzzle-loading firearm?
  2. May I lawfully transfer a firearm to a friend who resides in a different State?
  3. May I lawfully transfer a firearm to a resident of the same State in which I reside?
  4. How do I register my firearm or remove my name from a firearms registration?
  5. Does ATF issue a Concealed Carry Permit (CCP) that authorizes a person to carry a firearm throughout the United States?
  6. May I lawfully ship a firearm to myself in a different State?
  7. May I lawfully ship a firearm directly to an out-of-State licensee, or must I have a licensee in my State ship it to him? May the licensee return the firearm to me, even if the shipment is across State lines?
  8. I have been convicted of a felony. How do I reinstate my rights to possess a firearm?
  9. May I lawfully make a firearm for my own personal use, provided it is not being made for resale?
  10. I was the subject of a NICS check when I attempted to purchase a firearm from a FFL, and I received a delayed response or a denial. Please tell me why I did not receive a “proceed” response.

Please Download this document to review the answers to the Top 10 ATF questions Top 10 Frequently Asked Firearms Questions and Answers

NOTE: THE DOCUMENT BELOW ONLY DEALS WITH FEDERAL LAW AND YOU NEED TO LOOK AT YOUR STATE LAW TO SEE IF THERE ARE ADDITIONAL RESTRICTIONS- For example some states do not permit permit prohibited person to possess antique firearms even though it is permitted under Federal law

First let me say there is no $500 one-time tax for unlimited transfers. There is a $500 yearly fee for a FFL to obtain a Class 3 SOT which allows them unlimited transfers for that year from other dealers for items owned by their FFL. This fee needs to be paid yearly and may be in addition to other fees necessary depending on what the FFL will be doing. If you are interested in setting up a FFL, please Contact Us as we can put you in touch with someone to help you create your FFL and have the systems necessary to not create problems with the BATFE. You can buy cheap products out there that will help create the FFL, but just because you create n FFL does not mean it will be done correctly and you will understand what your duties and responsibilities. Our package helps you protect yourself from unintentional violations.

In regards to personal ownership, it is unfortunate but you, your company, or your trust will need to pay $200 for each silencer you purchase.

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

NOTE: 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.

The ATF National Firearms Act (NFA) Branch is pleased to announce that as of July 2011, ATF Forms 1, 2, 10 and ATF Form 5320.20 will be assigned to a legal instruments examiner for processing according to the State of the applicant’s address. The NFA Branch also will begin assigning ATF Forms 3, ATF Form 4 and 9 applications to examiners by the State of the transferor’s address. Applications already pending at the time of the change will continue to be processed by the examiner to whom they were previously assigned. Historically, applications in the NFA Branch have been assigned to legal instruments examiners alphabetically based on the name of the transferor or applicant. A chart showing the new assignment distribution is below.

The ATF expects this change in the assignment of applications to better enable NFA examiners to develop State law expertise and more knowledgeably and effectively respond to our customers during an era of unprecedented and ever increasing application volume. Please contact the NFA Branch at 304-616-4500 with any questions about this change.

NFA Examiner Assignment Distribution (effective July 2011)

  • Nicole Dudash — IL, IN, OH, PA
  • Chris Farris — AK, CT, MA, ME, MI, NH, RI, VT
  • Ann Feltner — AZ, CA, NM, NV
  • Jason Frushour — CO, MT, ND, SD, UT, WI, WY
  • Sara Jones — LA, TX
  • Albert Lamberger — AL, FL, TN
  • Dana Pickles — DE, KY, MD, NC, NJ, NY, VA, WV
  • Suzanne Santamaria — GA, SC
  • William Shipman — AR, HI, IA, KS, MN, MO, MS, NE, OK
  • Sandra Snook –ID, OR, WA

Applications from the District Of Columbia and US Territories Will be Assigned to the Supervisory Legal Instruments Examiner

sbr-silencer.jpgIf you are purchasing a Firearm that was previously manufactured under a Form 1 it may contain the engraving of the previous owner. Since this item was previously manufactured, you will be using an ATF Form 4 and not an ATF Form 1 to transfer this item and as such it will require no engraving on your part.

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