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Posted: 12/1/2016 9:04:08 PM EDT
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Hello all,
Have a question. Recently did my interview for my FFL. Interview went smoothly. I informed the interviewer that I plan on submitting for my SOT soon. Once she heard that, she informed it would be best to submit around may/june timeframe as they are issued on a yearly basis and not prorated. This brings me to the next question. In building up my inventory how does one acquire NFA items? I already know of many distributors but my question is must I submit a Form 4 in order to bring inventory into my shop? Do I have to pay the tax stamp on these items even though I am just building my inventory? I ask because that means the end product price will increase by $200. Then the consumer is stuck paying that + the cost of the firearm + an additional $200 to have it transferred to him. In this how it works? |
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Quoted:
Hello all, Have a question. Recently did my interview for my FFL. Interview went smoothly. I informed the interviewer that I plan on submitting for my SOT soon. Once she heard that, she informed it would be best to submit around may/june timeframe as they are issued on a yearly basis and not prorated. This brings me to the next question. In building up my inventory how does one acquire NFA items? I already know of many distributors but my question is must I submit a Form 4 in order to bring inventory into my shop? Do I have to pay the tax stamp on these items even though I am just building my inventory? I ask because that means the end product price will increase by $200. Then the consumer is stuck paying that + the cost of the firearm + an additional $200 to have it transferred to him. In this how it works? If on form 3 no tax, form 4 $200. |
| I'm sorry but I believe that anyone who has this obvious of lack of knowledge about the NFA process should do some more investigation and familiarize themselves with the NFA game before jumping in with both feet. At this point I really probably would suggest not even getting your FFL license until you become more familiar with federal firearms laws and regulations. |
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I'm sorry but I believe that anyone who has this obvious of lack of knowledge about the NFA process should do some more investigation and familiarize themselves with the NFA game before jumping in with both feet. That is what he is doing by asking questions now BEFORE he gets his SOT. |
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Quoted:
I'm sorry but I believe that anyone who has this obvious of lack of knowledge about the NFA process should do some more investigation and familiarize themselves with the NFA game before jumping in with both feet. At this point I really probably would suggest not even getting your FFL license until you become more familiar with federal firearms laws and regulations. cant know it all, thats why people ask around. |
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Hey all, thanks for the information and the advice. I greatly appreciate it.
Speaking of SOT and transfers. Here's a question that I would have called the ATF NFA branch for but got a little busy yesterday. If I am running my business and close after a few years and have NFA items in my possession. Such as SBR or suppressors, can I transfer them to myself on a Form 4 or since they are already in my possession am I allowed to maintain custody of them on the original Form 3 when they had been sent to me? Edit : found the answer https://www.ar15.com/forums/t_6_44/340950_.html&page=1 Apparently I was correct in my assumption, they would have to be Form 4 to the owner, surrendered, donated or destroyed (assuming no post-86 mg) |
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Wait....if the business is in my own name I don't need to Form 4 them to myself??? If your biz is setup as a Sole proprietor, then all inventory is your own personal property and may be retained after you close your business and give up your FFL. (No extra tax or paperwork) If your biz is setup as any type of corporation, S corp, LLC etc. then the inventory is owned buy the corp and transfers to your personal collection must be tax paid on a form 4. Post May 19, 1986 dealer samples can NOT be retained after close of business and must be transferred out to another Class II or Class III with a proper LEO sample request letter, or surrendered and forfeit. Going NFA for a short time then dumping SOT just to gain your own toys without paying the stamps is considered tax evasion and they may (likely) will come after you... However a friend of mine was a dealer for 3 years and had more than 300 NFA items in stock when a zoning change required the business to close, ATF refused to renew the FFL due to the zoning issue and they now own all those items tax free. |
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thats fkd. he couldnt find another location ?
Quoted:
If your biz is setup as a Sole proprietor, then all inventory is your own personal property and may be retained after you close your business and give up your FFL. (No extra tax or paperwork) If your biz is setup as any type of corporation, S corp, LLC etc. then the inventory is owned buy the corp and transfers to your personal collection must be tax paid on a form 4. Post May 19, 1986 dealer samples can NOT be retained after close of business and must be transferred out to another Class II or Class III with a proper LEO sample request letter, or surrendered and forfeit. Going NFA for a short time then dumping SOT just to gain your own toys without paying the stamps is considered tax evasion and they may (likely) will come after you... However a friend of mine was a dealer for 3 years and had more than 300 NFA items in stock when a zoning change required the business to close, ATF refused to renew the FFL due to the zoning issue and they now own all those items tax free. |
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thats fkd. he couldnt find another location ? in some cities zoning is a BITCH.. for example many cities in California will not issue a zoning clearance for a gun store. And if i remember correctly the actual city business license has to have the actual "gun store" use listed on their business license or i forget if its the federal or state will not allow the licenses to go thru. FFL is one thing, but cali has a whole SHITLOAD of other requirements with all their crap. Mainly thru the Cali DOJ i beleive. I am FUCKING GLAD i got outta california 7 years ago after living there for 20+ years. Great place to live but toooooo much laws, red tape, cost of living, politics.. and every fuckin thing else... so point is.... another place could be HARD as hell to find or expensive to invest into. or it could be as simple as moving would/could destroy someones business. And it does. |
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Quoted:
Going NFA for a short time then dumping SOT just to gain your own toys without paying the stamps is considered tax evasion and they may (likely) will come after you... How is it considered tax evasion when your SOT is a Tax Stamp? Did this actually happen to someone or is it more ffl folklore? |
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If I recall correctly there was a small gun shop in the late 90's.
FFL holder added Class II SOT and kept it for only 1 term. In that year he obtained 100+ items in inventory, sold 1 to a customer and 3 were sold to store employees. No other NFA transfers were processed. Since SOT runs from July 1st to June 30th and it does not matter when you get SOT it will still expire on June 30th, he held SOT status about 8 months. When ATF questioned why he had not renewed his SOT, he said there seemed to be no interest. He did retain his 'normal' retail FFL and the store continued in business. He was not charged, but came to some out of court settlement with ATF. That said - I don't trust a word from the mouth of any of todays LEO, unless they are on the stand and under oath - even then extra salt is required. All the LEO's with both honor and ethics I could trust have since retired. Keep in mind also - the ATF doesn't always push for convictions they can win, often they see an easy mark that they can bankrupt with court maneuvering before ever actually going to trial, they consider putting someone out of business a win. |
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Quoted:
If I recall correctly there was a small gun shop in the late 90's. FFL holder added Class II SOT and kept it for only 1 term. In that year he obtained 100+ items in inventory, sold 1 to a customer and 3 were sold to store employees. No other NFA transfers were processed. Since SOT runs from July 1st to June 30th and it does not matter when you get SOT it will still expire on June 30th, he held SOT status about 8 months. When ATF questioned why he had not renewed his SOT, he said there seemed to be no interest. He did retain his 'normal' retail FFL and the store continued in business. He was not charged, but came to some out of court settlement with ATF. That said - I don't trust a word from the mouth of any of todays LEO, unless they are on the stand and under oath - even then extra salt is required. All the LEO's with both honor and ethics I could trust have since retired. Keep in mind also - the ATF doesn't always push for convictions they can win, often they see an easy mark that they can bankrupt with court maneuvering before ever actually going to trial, they consider putting someone out of business a win. Noted! |
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