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Bureau of Alcohol, Tobacco, Firearms and Explosives

If I discontinue business as an importer, manufacturer, or dealer in NFA firearms must I dispose of my inventory of NFA firearms?

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 – 2014 Edition (Revised 3-7-15), which has been provided to all FFLs and may also be found on the ATF website (

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.