Grasshopper Posted February 9 Report Share Posted February 9 (edited) Hi All, I've got friends that live in very unpopulated areas that would like to buy suppressors & SBR's. There are no SOTs nearby. It would seem that a FFL holder w/o an SOT would be able to handle suppressor & SBR sales? Clarification - I realize they are still NFA. I can do eforms from me to my friends in the state of my residence w/o involving an SOT. I thought is was the 1968 GCA that prevented me from transferring a firearm (including NFA) outside my state of residency. Normally out-of-state require the use of folks with FFL's. (Still learning, aka Grasshopper) Am I missing anything here? Any thoughts are welcome. Enjoy!, Grasshopper Edited February 9 by Grasshopper Added Clarification (that might make it worse) Quote Link to comment Share on other sites More sharing options...
Uncle Zeek Posted February 9 Report Share Posted February 9 Even though the tax on SBRs and suppressors is now $0, they're still NFA-regulated firearms which require an SOT to handle transfers to the purchaser. Maybe one of your friends might find it worthwhile to get licensed as an FFL/SOT if there's nobody else in that area? Quote Link to comment Share on other sites More sharing options...
SGT Fish Posted February 9 Report Share Posted February 9 They could transfer the items in and out on a $0 tax paid form 4. Itd be similar to an individual selling them something. But it'd still be going through an FFL and still need the 4473 done. Its even possible to do so on eforms now 1 Quote Link to comment Share on other sites More sharing options...
Uncle Zeek Posted February 9 Report Share Posted February 9 Grasshopper, are you saying that you (or whoever the transferor is) want to transfer the firearms to friends in a different state? or in the same state? Quote Link to comment Share on other sites More sharing options...
Grasshopper Posted February 9 Author Report Share Posted February 9 Hi Uncle Zeek, Transfer a suppressor from FFL/SOT inventory in one state to an individual in another state. I know it has to go through an FFL in the receiving state due to the 1968 GCA. I've been told (and maybe in error) that NFA firearms can go through FFL's but w/o the SOT (Special Occupational Taxpayer) status, tax had to be paid. The 0$ stamp now makes this possible? Thanks, Grasshopper Quote Link to comment Share on other sites More sharing options...
SGT Fish Posted February 9 Report Share Posted February 9 2 hours ago, Grasshopper said: Hi Uncle Zeek, Transfer a suppressor from FFL/SOT inventory in one state to an individual in another state. I know it has to go through an FFL in the receiving state due to the 1968 GCA. I've been told (and maybe in error) that NFA firearms can go through FFL's but w/o the SOT (Special Occupational Taxpayer) status, tax had to be paid. The 0$ stamp now makes this possible? Thanks, Grasshopper That is correct as far as I know. Any FFL can sell a suppressor. They just cant Form 3 stuff or receive stuff on a form 3. But tax paid (now $0) form 4s would work. I could be wrong. But I believe it has always been this way Quote Link to comment Share on other sites More sharing options...
Grasshopper Posted February 10 Author Report Share Posted February 10 Hi SGT Fish, Thanks for the input. In the past I was told FFL's could handle NFA but because they lacked the SOT status, everything was done on a Form 4 (5320.4). Now with eforms and the $0 tax, it becomes an attractive option. Now I just have to sit down with a rural FFL to convince them to establish an eForms account. Thanks to everyone for the thoughtful comments. Grasshopper Quote Link to comment Share on other sites More sharing options...
jbntex Posted February 10 Report Share Posted February 10 It is illegal for an FFL to "Deal" in NFA firearms without a SOT. It doesn't matter if the tax rate to the end purchaser is now $0. The dealer has to register and pay the SOT tax. Title 26 - Chapter 53 - SS 5861 "Prohibited Acts" https://www.govinfo.gov/content/pkg/USCODE-2023-title26/html/USCODE-2023-title26-subtitleE-chap53-subchapC.htm ------------------------------------------------------------------ §5861. Prohibited acts It shall be unlawful for any person— (a) to engage in business as a manufacturer or importer of, or dealer in, firearms without having paid the special (occupational) tax required by section 5801 for his business or having registered as required by section 5802; or .... ------------------------------------------------------------------ I would suspect that if a dealer is accepting new inbound NFA firearm inventory (especially across State lines) and then turning around and selling or transferring that NFA same firearm inventory out to customers in exchange for money, that would probably be considered "dealing" by the BATFE. On top of it being illegal according to the Title 26 of the NFA, the receiving FFL would also would also be subject to the standard fingerprinting, pictures, responsible party form (if the FFL was a legal entity) and do a CLEO notification as well. Quote Link to comment Share on other sites More sharing options...
Grasshopper Posted February 10 Author Report Share Posted February 10 Hi jbntx, Now that is good reading. I had completely overlooked the Title 1 vs Title 2 firearms. That sums it up. Even if there is no transfer tax, to deal in Title 2 (NFA) firearms the dealer must be an SOT. Hence the name - Grasshopper Thanks again to all Quote Link to comment Share on other sites More sharing options...
SGT Fish Posted February 10 Report Share Posted February 10 12 hours ago, jbntex said: It is illegal for an FFL to "Deal" in NFA firearms without a SOT. It doesn't matter if the tax rate to the end purchaser is now $0. The dealer has to register and pay the SOT tax. Title 26 - Chapter 53 - SS 5861 "Prohibited Acts" https://www.govinfo.gov/content/pkg/USCODE-2023-title26/html/USCODE-2023-title26-subtitleE-chap53-subchapC.htm ------------------------------------------------------------------ §5861. Prohibited acts It shall be unlawful for any person— (a) to engage in business as a manufacturer or importer of, or dealer in, firearms without having paid the special (occupational) tax required by section 5801 for his business or having registered as required by section 5802; or .... ------------------------------------------------------------------ I would suspect that if a dealer is accepting new inbound NFA firearm inventory (especially across State lines) and then turning around and selling or transferring that NFA same firearm inventory out to customers in exchange for money, that would probably be considered "dealing" by the BATFE. On top of it being illegal according to the Title 26 of the NFA, the receiving FFL would also would also be subject to the standard fingerprinting, pictures, responsible party form (if the FFL was a legal entity) and do a CLEO notification as well. This makes sense. Though I have been told otherwise. But your citation of the law isnt wrong. FFLs dont need to submit fingerprints and such though. I have form 1d DDs under my 07/02 and they never ask for anything. For some reason they treat it differently than a regular trust or corp Quote Link to comment Share on other sites More sharing options...
Uncle Zeek Posted February 10 Report Share Posted February 10 (edited) 5 hours ago, SGT Fish said: FFLs dont need to submit fingerprints and such though. I have form 1d DDs under my 07/02 and they never ask for anything. For some reason they treat it differently than a regular trust or corp *edit* diregard what I said Edited February 10 by Uncle Zeek Quote Link to comment Share on other sites More sharing options...
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