Armory Sponsor
Posted: 12/29/2009 4:23:15 PM EDT
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I have a few SBR, so I fully understand how an individual submits a Form 1 to BATFE along with $200 for a tax stamp. However, I am unfamiliar with Form 3's and Form 4's
When is a Form 3 used? When is a Form 4 used? I'm asking becasue I need to part with one of my SBR's, and it will probably sell to an out-of-state buyer. All I know is that it will require (2) transfers of $200 each. But on which forms? |
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Quoted:
I have a few SBR, so I fully understand how an individual submits a Form 1 to BATFE along with $200 for a tax stamp. However, I am unfamiliar with Form 3's and Form 4's When is a Form 3 used? When is a Form 4 used? I'm asking becasue I need to part with one of my SBR's, and it will probably sell to an out-of-state buyer. All I know is that it will require (2) transfers of $200 each. But on which forms? Form 3 is a tax free Dealer to Dealer transfer. Form 4 is a $200 transfer used anytime one or both parties are not dealers (which is your case). |
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A tax-free Form 3 may only be used when both the seller and buyer hold current valid FFL/SOTs.
If either the seller or the buyer, or both, do not have an FFL/SOT, a Form 4 must be used and the $200 transfer tax is due. So if a non-FFL/SOT individual sells an item out-of-state, a Form 4 ($200 tax due) is used to transfer it to the out-of-state dealer, and a second Form 4 ($200 tax due) is used to transfer it from that dealer to the end buyer. |
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Quoted:
A tax-free Form 3 may only be used when both the seller and buyer hold current valid FFL/SOTs. If either the seller or the buyer, or both, do not have an FFL/SOT, a Form 4 must be used and the $200 transfer tax is due. So if a non-FFL/SOT individual sells an item out-of-state, a Form 4 ($200 tax due) is used to transfer it to the out-of-state dealer, and a second Form 4 ($200 tax due) is used to transfer it from that dealer to the end buyer. That's exactly the info I was looking to clarify. Thank you. Much appreciated. But I have 1 more question. 
Can I fill out the Form 4 myself and submit it directly to BATFE, just as did my Form 1's, or do I have to have my local SOT dealer do the paperwork? I'd like to avoid extra cost..... |
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You would complete the Form 4 with the buyer of the item (they could send you an electronic copy of one with their info in the right spots or whatever), the item transfers directly from you to the out-of-state buyer's dealer via Form 4, skipping your in-state dealer entirely. The out-of-state dealer's time to fill out the form should be included in his transfer fee to the final buyer.
Kharn |
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+1 mostly.
If you are selling an NFA item to an out-of-state individual: 1. Ask the buyer which in-their-state FFL will be handling the transfer. 2. Get the receiving FFL's info –– name/address as it appears on their FFL, and their county of residence/operation; EIN (Employer Identification Number); and class of SOT, if they hold one. 3. Download a pdf of a Form 4 and fill in the above info, and your info. Since the out-of-state recipient must be a dealer, the info in Step 2 above is all that is needed. There is no reason to send it to them –– just mail it directly to BATFE/Atlanta in duplicate, along with a check for $200. It's prolly a good idea to speak to the receiving FFL so they know it's coming, but they do not need to sign anything, or even see the paperwork. Once the approved Form 4 is returned to you, make a photocopy of it for yourself for your records, and then send the original along with the NFA item to the receiving dealer. I always include a letter and bill of sale, that specifies who is buying it, with their contact info. HTH! |
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