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  1. #11
    Gunco Veteran panaceabeachbum's Avatar
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    Quote Originally Posted by kernelkrink
    A 100% receiver build, from a transfer paperwork angle anyway, is no different than any other normal rifle.

    This is not correct, when you did your 4473 at the dealer you were purchasing a bare receiver, it doesnt matter if he wrote rifle or receiver in the appropriate line on the form or not , you bought a bare receiver which has never been assembled into a working firearm and as such has not had the 11% excise tax paid. Your dealer isnt in a position to legaly decide your rec is a rifle or pistol, he is transfering nothing more than a bare rec which has had no excise tax paid.

    Assembling a working firearm for resale without paying this tax is tax evasion , no different than assembling and selling firearms on home made receivers without a licensce .

    As mentioned in your post ATF does allow for the occasional sale of homemade firearms on an occasional basis but just because it came from a manufacturer as a serialized ffl item does not exempt you from the need to be a manufacturer to resell it and to pay the excise tax.

    I see lots of guys on the various boards stating they used a nodak etc serialized rec so they can resell it when desired and I just want to point out that receivers do not have any excise tax paid and when you assemble a working firearm from it you are the manufacturer and are responsible for payment of this tax and appropriate licensing if you are assembling it for possible resale.

    On a side note when the dealer fills out the 4473 with the appropriate manufacturers info he is required to treat the receiver as a pistol in regards to waiting period, multiple handgun sales etc. Even though it is not a pistol or rifle it can be used to assemble either and as such has to be handled as if it were a pistol.

    In short assembling a working firearm from a serialized receveir you bought thru your ffl dealer on a 4473 cannot be resold or disposed of in a fashion any differently than one you assembled from barstock yourself in the garage as far as federal laws are concerned . Yes it may be easier to sell because it has somebody elses manufacturer info and serial number on it its still tax evasion no different than selling an entirely homemade firearm.

    Be aware that if the serial # of a firearm built from a bare receiver is traced it will be determined thru the manufactures serial # that the rec left the factory as a bare receiver only and ATF/IRS could (and has) taken the stance that somebody in the supply line assembled a firearm without proper licensing to avoid paying tax , if your the unlucky person that signed the 4473 on the bare rec you might very well be the one charged, in the event your dealer wrote "rifle" when he logged the rec out to you and the manufacturer sold him a rec they will most probably be looking at him for the tax and manufacturing without a licence.

    Apologies for being so long winded on the subject , its been beat to death on the ar15 boards as a quite a few folks ,and at least two former gunshop owners I know of, have learned the hardway.

  2. #12
    Gunco Good ole boy kernelkrink's Avatar
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    Excise tax is only charged on brand new firearms, used ones are exempt. This per the Superviser, firearms and ammunition excise tax group of the national revenue center. Her name is Connie Owings, the email she sent is reproduced below. I am assuming most people selling a rifle they produced for their own personal use is going to be used. "Personal Use" is the only purpose an unlicensed individual is allowed for making their own firearm.

    Selling a new rifle assembled from a parts kit and a receiver that you assembled for the purpose of resale is illegal for a private individual because such activity requires a manufacturers license. Recent legislation has exempted small volume firearm "producers" from excise tax on the first 50 firearms they make per year. This legislation was passed for the express purpose of exempting dealers and gunsmiths from the very situation you report: ATF trying to collect tax and prosecute for normal Gunsmith type work. ATF has stated that simply adding aftermarket parts to a firearm, if it increases the value of it, means the Gunsmith/Dealer owes tax on the added value. Something as routine as mounting a scope and boresighting it prior to sale as a "package deal" could result in the dealer owing excise tax for the difference in price between that deal and a plain rifle.
    Email text:


    I (representing the Alcohol and Tobacco Tax and Trade Bureau (TTB)) can only
    address questions pertaining to your Firearms and Ammunition Excise Tax (FAET)

    Therefore, the following are the answers to your excise tax questions:

    * If I build such a rifle for personal use as stated above, do I owe excise tax?
    If the answer is yes, what do I have to do to pay it?

    The answer to this question is - No...you do not owe excise tax due to Title
    27, Code of Federal Regulations, Section 53.112(b) - Personal Use - which
    provides - The tax on use of a taxable article (firearms or shells and
    cartridges) does not attach in cases where an individual incidentally
    manufacturers, produces or imports a taxable article for his personal use or
    causes a taxable article to be manufactured, produced or imported for his
    personal use.

    * Would the firearm(s) I build be subject to excise tax in the following

    1. I die and my heirs become the owners of my rifles

    2. I wish to make a gift of my rifle to a family member or friend

    3. I sell my rifle to an individual

    The answer to this question is - If you manufacture and use the rifle(s) (for
    personal use) before any of the three above "events" occur - no excise tax would
    be due.

    But...if you do not use the rifle(s) for personal use before any of the three
    "events" occur - excise tax could be due.

    If you have any further excise tax questions, please feel free to contact me.

    Constance L. Owings
    Supervisor, Firearms and Ammunition Excise Tax Group
    Excise Tax Branch
    National Revenue Center
    Cincinnati, Ohio
    Phone: 513-684-7228 Fax: 513-684-2252

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