For more detailed information on this matter, please refer to item 10(f) of the General Information section of ATF P 5300.4, Federal Firearms Regulations Reference Guide 2005, which has been provided to all FFLs and may also be found on the ATF website (www.atf.gov).
In general, any NFA firearm in inventory may be retained by the taxpayer upon the termination of the NFA business (meaning the person no longer pays the special tax and/or no longer has an FFL to import, manufacture, or deal in firearms) except for a machinegun for which its possession is restricted by the provisions of Title 18, U.S.C. § 922(o). A machinegun with this type of restriction on possession is commonly known as a ‘post-1986’ machinegun. As provided by 27 CFR § 479.105(f), a ‘post-1986’ machinegun must be disposed of prior to the discontinuance of the business as an importer, manufacturer, or dealer.
However, if the business structure was other than a sole proprietorship, such as, for example, a corporation or partnership, and the corporation or partnership dissolves, then the NFA firearms in inventory must be transferred prior to the dissolution. A corporate officer or director or partner cannot retain the NFA firearms registered to the corporation or partnership without proper transfer.