i was talking to a friend about finishing an 80% lower and he said i have to pay a tax to the atf when i finish the lower.  i have never heard of this before.  can someone shed some light on this......

Your friend is FOS!  No tax required.  No serial number is required although it IS suggested.  Can only make one per year and not with intent to sell.  It IS legal to sell it later if you change your mind.  It will be a post-ban and you are the manufacturer.  Must comply with all local laws.

He might have been thinking of full-auto but those are illegal for non 07/sot to make now anyway.  You COULD still make it and legally register as AOW or SBR as appropriate.

The firarm manufarturer's excise tax thing.  He's sorta correct.  You can read up about it on the ATF website.  But if you are building just for you and not for sale, then there is no tax.

If you become a class 2 manufacturer, then you need to start worrying about that tax.

Federal excise tax, due upon completion/sale of finished firearm. I had to argue w/ ATF on my SBR lower status, as I bought bare lower in '88
and had as 11.5-5.5 all along. never reported finished rifle as it was built for personal use-not for sale. Well I won, as I had the receipt, copy of 4473.

Mr. Mouse,

What is you basis for the one-a-year rule?

thanks,

JJ

Can't remember the source, to be honest!  Has to do with "for your own use" rather than "for sale".