I'm shopping an SWD M11/9, and finally find one from an FFL and agree upon a purchase price. I got this email from him.

 XXXXX,
Here is a copy of my FFL and the address to send the money
Please make out the check to XXX XXXXX

Send me the info for your FFL Dealer and I'll get the form 4 off to
BATF...there is a 200 dollar transfer due upon sending to BATF on a form 4
to a dealer.  There will be a second 200 transfer tax going from your dealer
to you when he does that transfer. I'll send you a copy of the form 4 when I
send it off.

SERIOUSLY????? Obviously this guy has absolutely no clue what he's talking about. I'd think an FFL in possession on a SMG would know enough that a class III item ships dealer to dealer on a form 3 , and then a form 4 done from the receiving FFL . Is this guy an idiot, or do you think he's trying to take me for one? I stated it was my first machine gun, but didn't feel the need to state I am aware of NFA/ATF items and procedures as I have plenty of suppressors and SBR's. At this point I feel like he's trying to scam me or bilk me for $200 because he thinks I don't have a clue?

http://machinegunpriceguide.com/html/the_transfer.htmlThe Transfer: How an Individual Sells (Buys) a Machine Gun.

So you’ve made the deal to sell or buy that machine gun and now it’s time to confront the paperwork involved in the NFA transfer. As you recall, the National Firearms Act of 1934 and subsequent legislation proscribes the manner in which the federal government allows machine guns to transfer among individuals. The key piece of paper  is ATF Form 5320.4 or Form 4. This is a tax paid ($200) transfer used if the machine gun is being sold to either an individual or a SOT. There can not be a physical transfer of the machine gun until the NFA Division of ATF approves the Form 4 by attaching a $200 tax stamp and sending it back to the transferor. Two original copies of the Form 4 are required and the following are the instructions for completing them.

The front side of the Form 4 identifies the seller (transferor) and buyer (transferee) of the machine gun and the characteristics of the gun. This includes the manufacturer, type of gun, caliber and serial number of the gun.

For an individual buyer in your home state, the back side of the Form 4 qualifies that the buyer is eligible to purchase firearms under federal law. The yes/no questions are somewhat similar to a Firearms Transaction Record or Form 4473 typically used when purchasing a firearm from an FFL or gun shop.

A 2"x2" photo of the buyer is attached to the back of each Form 4.

An individual buyer must obtain a Law Enforcement Certification on the Form 4 which is the signature of a Chief Law Enforcement Officer (CLEO) of their locale.
This sign-off simply states that they (the CLEO), "...have no information indicating that the transferee will use the firearm or device described on this application for other than lawful purposes. I have no information that the receipt or possession of the firearm or device described in item 4 would place the transferee in violation of State or local law. "

In general a CLEO is the County Sheriff, Chief of Police, District Attorney or Judge of the buyer’s locale. Obtaining this sign-off can be an obstacle in areas that have anti-gun sentiments. If this is the case, other methods such as forming a Trust or a corporation will nullify the CLEO signature requirement. The best advice is to seek competent counsel if these alternate methods are required.

The buyer must also provide his fingerprints on two copies of FBI/NFA fingerprint cards. Typically the Sheriff's office or Police Station can provide this service.

Additionally, the buyer completes ATF Form 5330.20 that certifies US (or other) citizenship.

The two Form 4s, two fingerprint cards, 5330.20 and a $200 transfer tax payment are sent to the NFA tax collection address as shown on the Form 4. If everything goes well, in approximately 8-12+ weeks an approved original copy of the Form 4 is sent back to the seller and the machine gun can be physically transferred to the buyer.

For a SOT buyer in any state or first transfer to an out of state SOT for a subsequent transfer to an individual buyer in that state, the same Form 4s are used, but photos, fingerprint cards, CLEO signature and 5330.20 are not required. The $200 transfer tax is still paid. For the individual buyer in another state, an additional transfer as described above will occur between him and the receiving SOT.

So if a Machine Gun is sold to an individual buyer in another state, the first transfer is to a SOT in the buyer's home state. The buyer's home state SOT then transfers the gun to the buyer in that state. This means there are two transfers with two transfer taxes or $400 total tax.

He is an FFL, not an individual. A dealer to dealer transfer does not require a form 4, it requires a form 3 which does not consist of a tax stamp, it's a transfer.

Probably not on his book, bought before he had sot maybe?

Not sure. I'm awaiting a response to email.

+1

He could also be selling on consignment a MG registered to an individual.

This is also what I was thinking.  Either way good luck, and let us know what he says.

Why are you are assuming he is an SOT?

Fwiw I bought a MG from a dealer but it was registered to his trust and required a form 4 to transfer it to my dealer.

I wouldn't immdiately accuse him, just ask why it needs a form 4 and not a form 3. Also most time the seller covers the first form and the buyer covers the second.

Nailed it. A little miscommunication going on. He's got another buyer lined up, so I decided to take a pass, as the extra time and money are not worth it to me. Good info. and learning experience. Thanks for insight and input everyone.

I didn't accuse him. At least not Directly I asked him. My bad, and admit that. I guess I'm actually a little jumpy because I've encountered a couple shady characters who didn't even come close to passing the sniff test in my search for my first SMG, and it's brought about an uneasiness. I think I'll just take a step back, and wait to find one local or on form 3 at a good deal.

Don't buy out of state, unless you know the instate transfer will be tax-free on F3.

Consider it lesson learned cheaply.

If it's on a form 4 out of state then it takes two stamps. That's how is always been. It's clearly not coming from an SOT. So, what price did you get on the gun? If you saved a ton of money on the purchase then mentally you could say it offset the extra stamp. I just bought an M11/9 at my dealer for $3200, and I wasn't keen on paying tax, but it was $224 so only a little more than another stamp had I bought out of state.

No, that is not how it works.

The form it came in on means nothing. I have lots of NFA on form 4 but it can go out on Form 3, Form 4, Form 5, etc. The past form means nothing, the next form is determined by the status of the transferor and transferee.

Right but I'm saying if the seller isn't a SOT then it would have to ship to the out of state SOT a form 4 right?