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Posted: 3/28/2006 8:09:39 PM EDT
Can I let my C&R expire now that the new law has been signed and keep my C&R Thompson? I've had this license for ten years now and have bought 6 weapons with it, 3 of which are auto's, 2 of them I sold five years ago. I know in the past if i got rid of the license that the guns would have to be sold, but what about now? This is something i dont understand. Thanks
Link Posted: 3/28/2006 9:13:53 PM EDT
Link Posted: 3/28/2006 9:27:16 PM EDT
I had a transfer in progress when the opinion came out that I had questions about, and according to the Detroit ATF office, if I had a weapon under my license, and the license expired, I'd need to transfer it to myself under non-licensed ownership, and pay the $200 in the case of Title II stuff. Because your Form 4 lists you (the owner) as a C&R holder, with that paperwork in place, it was explained to me that you cannot let your C&R license lapse with items logged in your book.

You may want to call the compliance office at Detroit ATF and confirm.

-Dan
Link Posted: 3/29/2006 2:37:21 AM EDT
That sounds silly to me. Even as a C&R licensee when you bought a MG you had to pay the $200 dollar tax. You certainly don't have to pay a second $200 tax if your C&R license expires that does not sound right. I could be wrong but if your personal name is at the top of that form 4 then you own the stuff and paid the tax as an individual. Giving up your C&R may require bound book log entries showing transfer off the books transfering to yourself but I would not expect a second tax form 4 transfer requirement.

Now, if on the other hand your C&R license was in a corporate setup or something of that nature and the corp was disolved then a transfer would become necessary from the corp back to yourself tax paid. Perhaps ATF Detroit is confusing a corporate disolution with a C&R disolution. Giving up your C&R would require sending your records in to ATF and that's probably all.

Now something like this applies to other types of FFL's such as C2, C3's paying an SOT yearly tax in order to transfer weapons tax free. When their license expires the tax would become due per weapon and certain weapons such as post samples would have to clear the books and transfered on to other dealers or be surendered to the gov. Others such as pre-86 transferables and pre-dealer samples could be kept and transfered off the books back to the person tax due and transfered via the form 4 routine I believe.

Also the FFL's records would have to be sent in to ATF.

As for letting your license lapse - I wouldn't. I just sent in my renewal. For the 30 bucks keep it. You have the advantage of transporting your C&R guns across state lines for a shoot without the 5320.20 paperwork for one. Other benefits are with vendors. So I say keep your C&R license.
Link Posted: 3/29/2006 3:28:26 AM EDT
$30 every three years is cheaper than legal fees.
Link Posted: 3/29/2006 4:42:30 AM EDT
[Last Edit: 3/29/2006 4:42:54 AM EDT by PatrickSweeney]
Yes, keep the license. As for a future AG re-writing the opinion, that'd be hard. The current AG based his opinion on both statute and case law. While the wording of the statute may be open to interpretation, case law will exist for as long as the case law books are on the shelves. No, it would take a legislative act to overturn the new opinion.

But keep the license. Not because you're afraid of a new opinion, but because it is the prudent thing to do.
Link Posted: 3/29/2006 8:56:24 PM EDT

Originally Posted By MichMan1:
$30 every three years is cheaper than legal fees.



Keep the C&R, I mean really, if you aren't saving at least $30 a YEAR by having it already. I mean, no transfers, discounts at various places. Even if you don't buy anymore C&R guns....you can still use the discounts.

No Expert
Link Posted: 3/29/2006 9:46:45 PM EDT
I have all intentions of renewing my license, I just wanted to know what would happen if i let it go.
Link Posted: 3/30/2006 2:20:33 AM EDT

Originally Posted By BustOff:
You have the advantage of transporting your C&R guns across state lines for a shoot without the 5320.20 paperwork for one. Other benefits are with vendors. So I say keep your C&R license.


+1 Keep it
Link Posted: 3/30/2006 3:41:52 AM EDT

Originally Posted By motorcityman:
I have all intentions of renewing my license, I just wanted to know what would happen if i let it go.


Ok.

AS far as the MG part of it...I dunno. I'm not 100% fully read on it. But most likely, if you WERE to get rid of it...you'd immediately see a C&R gun you wanted.
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