ATF

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Bureau of Alcohol, Tobacco, Firearms and Explosives

Are there any exemptions from the making or transfer tax provisions of the NFA?

Yes. These are noted below, along with the required form number, if any, to apply for the exemption. Completed forms must be approved by the NFA Branch prior to the making or transfer:

  1. Tax-exempt transfer and registration of a firearm between special (occupational) taxpayers: ATF Form 3 (5320.3).
  2. Tax-exempt making of a firearm on behalf of a Federal or State agency: ATF Form 1 (5320.1). Tax-exempt transfer and registration of the firearm on behalf of a Federal or State agency: ATF Form 5 (5320.5).
  3. A licensed manufacturer under contract to make NFA firearms for the U.S. Government may be granted an exemption from payment of the special (occupational) tax as a manufacturer of NFA firearms and an exemption from all other NFA provisions (except importation) with respect to the weapons made to fulfill the contract. Exemptions are obtained by writing the NFA Branch, stating the contract number(s) and the anticipated date of termination. This exemption must be renewed each year prior to July 1.
  4. Tax-exempt transfer and registration of an unserviceable firearm which is being transferred as a curio or ornament: ATF Form 5 (5320.5).
  5. Tax exempt transfer of a firearm to a lawful heir: ATF Form 5.
  6. Tax-exempt transfer by operation of law (e.g., court order).

[26 U.S.C. 5851-5853, 27 CFR 479.69, 479.70 and 479.88–91]