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Posted: 10/31/2014 10:34:15 AM EDT
[#1]
Are you currently an FFL actively engaged in a trade or business? The ATF frowns upon SOT's doing transfers solely for themselves. I Don't specifically know of this happening but I could see the IRS making a case for tax evasion as the items would transfer on a Form 3 and no tax would be paid.
If you are running it as a business and would like to become an SOT in addition to an FFL I don't see any issues as long as you play by the rules regarding the LE demo letter. It might be wise to consult an attorney in your state who deals with NFA issues. |
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Posted: 10/31/2014 11:15:47 AM EDT
[#2]
Quote HistoryQuoted: Are you currently an FFL actively engaged in a trade or business? The ATF frowns upon SOT's doing transfers solely for themselves. I Don't specifically know of this happening but I could see the IRS making a case for tax evasion as the items would transfer on a Form 3 and no tax would be paid. If you are running it as a business and would like to become an SOT in addition to an FFL I don't see any issues as long as you play by the rules regarding the LE demo letter. It might be wise to consult an attorney in your state who deals with NFA issues. I don't see how it could be tax evasion as you can't pay a tax on post sample gun (which the OP said he wanted). Also, even if the OP were to get two guns that he could pay the tax on, the $500 SOT tax still exceeds the $400 tax he would have owed. I can't see the treasury department charging someone with tax evasion because they chose to pay a $500 tax instead of paying a $400 tax. |
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Posted: 10/31/2014 11:40:25 AM EDT
[#3]
Quote HistoryQuoted:
Are you currently an FFL actively engaged in a trade or business? The ATF frowns upon SOT's doing transfers solely for themselves. I Don't specifically know of this happening but I could see the IRS making a case for tax evasion as the items would transfer on a Form 3 and no tax would be paid. If you are running it as a business and would like to become an SOT in addition to an FFL I don't see any issues as long as you play by the rules regarding the LE demo letter. It might be wise to consult an attorney in your state who deals with NFA issues. Im applying for a 01 FFL to do transfers out of my home. I created a LLC which is what the FFL would be under. Once I recieve my 01, I would like to apply for a SOT so I could get my hands on post 86 mg with a LE letter. So it would not seem like tax evasion, I would file form 4's for any suppressors or form 1's for sbr's that I want for myself. |
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Posted: 10/31/2014 2:41:52 PM EDT
[#4]
Note: you don't apply for a SOT.
The T in SOT stands for tax. You fill out the tax form and pay the tax. |
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Posted: 10/31/2014 7:49:46 PM EDT
[#5]
Quoted:
Is it okay to apply for a 03 SOT for the purpose to only acquire a few post 86 mg? I understand you would still need a LE letter No it is not OK. Post-86 MGs can only be acquired for sale to LE/MIL, not because "I want one". |
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Posted: 10/31/2014 9:41:49 PM EDT
[#6]
OP stop posting multiple threads about the same subject.
You've been a member long enough to know that. http://www.ar15.com/forums/t_6_44/434311_01_FFL_and_SOT_03.html |
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Posted: 10/31/2014 9:53:28 PM EDT
[#7]
Quoted:
Is it okay to apply for a 03 SOT for the purpose to only acquire a few post 86 mg? I understand you would still need a LE letter I have a few buddies have looked to do the same thing. No LE they have talked to will sign a demo letter. |
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Posted: 10/31/2014 10:46:15 PM EDT
[#8]
Quote HistoryQuoted:
OP stop posting multiple threads about the same subject. You've been a member long enough to know that. http://www.ar15.com/forums/t_6_44/434311_01_FFL_and_SOT_03.html Calm down and relax... 8) Posting repeat topics with similar or slightly varying titles. While it may seem to be funny, the "spamming" of the community in this manner results in problems for users and management. (Multiple topics on important issues or discussions are acceptable, this only applies to topics which waste resources for no other reason except personal enjoyment or humor.) |
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Posted: 10/31/2014 11:22:37 PM EDT
[#9]
Question asked, and discussed, in the FFL forum.
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