REVEN

DEPARTMENT

179.528 179.52b

179.52c 179.53

179.54

179.55

179.56

179.57

179.58

Single sale.

179.60 179.61

owner.

179.62

179.63

CHANGE OF BUSINESS LOCATION

TITLE 26-INTERNAL REVENUE,

1954

Chapter -Internal Revenue Service, Department of the Treasury Subchapter E-Alcohol, Tobacco, and Other Excise Taxes

PART 179-MACHINE GUNS AND CERTAIN OTHER FIREARMS

Preamble. 1. These regulations, 26 CFR Part 179, "Machine Guns and Certain Other Firearms" supersede Regulations 88, 1952 edition (26 CFR Part 319, 17 F.R. 7842), and are promulgated in order to implement the Internal Revenue Code of 1954.

2. These regulations shall not affect any act done or any liability or right accruing, or accrued, or any suit or proceeding had or commenced before the effective date of these regulations.

3. These regulations shall be effective on the first day of the first month which begins not less than 30 days following the date of publication in the FEDERAL REGISTER.

Special (occupational) tax rates. Registration, return, and payment of special (occupational) taxes.

Employer Identification number. Application for employer identification number.

Execution of Form 88-4.

The special tax stamp, receipt for special (occupational) taxes. Special tax stamp to be posted. Certificates in lieu of stamps lost or destroyed.

Sec.

179.96

179.59

Liability for tax

Transfer tax in addition to import duty.

APPLICATION AND ORDER FOR TRANSFER OF

FIREARM

Written application and order required for transfer of firearm. Identification of applicant.

Requirements for approval of application and order for transfer. Cancellation of stamp.

CONCERNING EXEMPTIONS FROM TRANSFER TAX

179.106

payers.

Peace officers.

Government Agencies.

Unserviceable firearms.

tax

Notice of exemption and transfer. Responsibility of transferor for exempt status of transferee.

Subpart F-Registration and Identification of Firearms

Application for registration of firearm.

Identification of firearms.

Subpart G-Importation and Exportation

IMPORTATION

Procedure.

Importation into territory or pos

session.

Tax on transfer of imported fire

arm.

EXPORTATION

Application and permit for ex

portation of firearms.

Tobacco Tax Division.

Procedure by exporter.

179.103

Engaging in more than one busi

179.104b

ness at the same location. Partnership liability.

179.105

CHANGE OF OWNERSHIP

Changes through death of owner. Changes through bankruptcy of

Change in partnership on unincorporated association. Change in corporation.

179.120 179.121

Action by Director, Alcohol and

Action by Customs.

179.137

Proof of exportation.

(a) The special (occupational) taxes imposed by Chapter 53 of the Internal Revenue Code of 1954, on manufacturers and importers of, and dealers (including pawnbrokers) in, certain firearms, including machine guns and silencers or mufflers;

(b) The stamp tax imposed by Chapter 53 of the Internal Revenue Code of 1954, on the transfer of such firearms; and

(c) The stamp tax imposed by Chapter 53 of the Internal Revenue Code of 1954, on the making of such frearms (other than by qualified manufacturers).

§ 179.2 Other laws applicable.

Other provisions of the internal revenue laws are made applicable by section 5846 of the Internal Revenue Code of 1954 to the taxes referred to in § 179.1.

"Firearm" shall mean (a) a shotgun having a barrel or barrels of less than 18 inches in length, or (b) a rifle having a barrel or barrels of less than 16 inches in length, or (c) any weapon made from a rifle or shotgun (whether by alteration, modification, or otherwise) if such weapon as modified has an overall length of less than 26 inches, or (d) any other weapon, except a pistol or revolver, from which a shot is discharged by an explosive if such weapon is capable of being concealed on the person, or (e) a machine gun, and includes (f) a muffler or silencer for any firearm whether or not such firearm is included within the foregoing definition. § 179.21

Fixed ammunition. "Fixed ammunition" shall mean that self-contained unit consisting of the case, primer, propellant charge, and projectile or projectiles.

§ 179.22 Importation.

"Importation" shall mean the bringing of a firearm within the limits of the United States or any territory under its control or jurisdiction, from a place outside thereof (whether such place be a foreign country or territory subject to the jurisdiction of the United States), with intent to unlade. Except that, bringing a firearm from a foreign country or a territory subject to the jurisdiction of the United States into a foreign trade zone for storage pending shipment to a foreign country or subsequent importation into this country. pursuant to the I.R.C. and this Part, shall not be deemed importation.

§ 179.23 Importer.

"Importer" shall mean any person who imports or brings firearms into the United States for sale.

mean

any

"Machine gun" shall weapon which shoots, or is designed to shoot, automatically or semiautomatically, more than one shot, without manual reloading, by a single function of the trigger.

$179.29 Making of a firearm.

The "making of a firearm" shall mean the production of a firearm by any means, whether by manufacture, putting together of parts, alteration. any combination thereof, or otherwise. and by any process of manipulation or transformation of any firearm.

Examples: (1) The sawing off of a barrel or barrels of a shotgun to a length of less than 18 inches, or (2) the altering of a semiautomatic pistol by the change or addition of parts so as to produce a fully automatic or machine gun type of firearm.

§ 179.29a Manual reloading.

"Manual reloading" shall mean the inserting of a cartridge or shell into the chamber of a firearm either with the hands or by means of a mechanical device controlled and energized by the hands.

$179.35 Pistol.

"Pistol" shall mean a weapon originally designed, made, and intended to fre a small projectile (bullet) from one or more barrels when held in one hand, and having (a) a chamber(s) as an integral part(s) of, or permanently aligned with, the bore(s); and (b) a short stock designed to be gripped by one hand and at an angle to and extending below the line of the bore(s). The term shall not include any gadget device, any gun altered or converted to resemble a pistol, any gun that fires more than one shot, without manual reloading, by a single function of the trigger, or any small portable gun such as: Nazi belt buckle pistol, glove pistol, or a one-hand stock gun designed to fire fixed shotgun ammunition.

"Shotgun" shall mean a weapon designed or redesigned, made or remade, and intended to be fired from the shoulder and designed or redesigned and made or remade to use the energy of the explosive in a fixed shotgun shell to fire through a smooth bore either a number of ball shot or a single projectile for each single pull of the trigger. $179.11 Taxpuyer.

"Taxpayer" shall mean any person subject to a tax.

$179.12 To transfer or transferred.

"To transfer" or "transferred" shall include to sell. assign, pledge, lease. lean, give away, or otherwise dispose of. § 179.13 United States,

"United States" shall mean the States and the District of Columbia. $ 179.11 S

"U.S.C." shall mean the United States Code. § 179.45

Unserviceable firearm. "Unserviceable firearm" shall mean a firearm which is incapable of dis

charging a shot by means of an explosive and incapable of being readily restored to a firing condition.

SUBPART C-SPECIAL (OCCUPATIONAL)

TAXES

PAYMENT OF TAX

8 179.50 Liability for tax.

Every person who engages in the business of importing, manufacturing or dealing in (including pawnbrokers) firearms in the United States is required to pay a special (occupational) tax for each place where such business is conducted.

§ 179.51

Sperial (orrupational) tax

rates. (a) The special (occupational) taxes are as follows:

Per year or fraction thereof $500

Class 1: Importers of firearms. Manufacturers of firearms, except manufacturers in Class 2.. Class 2: Manufacturers of firearms limited whose production is to guns with combination shotgun and rifle barrels, 12 inches or more but less than 18 inches in length, from which only a single discharge can be made from either barrel without manual reloading, or guns classified as "any other weapon" under section 5848 (5), I.R.C., or guns of both types. Class 3: Pawnbrokers. Class 4: Dealers, other than pawnbrokers, except those in Class 5. Class 5: Dealers whose dealing in firearms is limited to guns with combination shotgun and rifle barrels, 12 inches or more but less than 18 inches in length, from which only a single discharge can be made from either barrel without manual reloading, or guns classified as "any other weapon" under section 5848 (5), I.R.C., or guns of both types..

500

25 300

200

10

(b) The tax year begins July 1 and ends June 30, Special (occupational) taxes are due and payable on first engaging in business, and thereafter on or before the first day of July each year. Special (occupational) taxes may not be prorated. Persons commencing business at any time after the first day of July in any year are liable for the special (occupational) tax for the complete tax year.

§ 179.52 Registration, return, and payment of special (occupational)

taxes.

Every person, prior to commencing any business taxable under section 5801. I.R.C.. must, for each place of business operated by such person, register, file a return (Form 11) with. and pay the proper tax to, the District Director of the collection district in which each such place of business is located. Thereafter, such person must, for each place of business, register, file a return (Form 11), and pay the proper tax on or before the 1st day of July each year during which he continues such business. If a person has paid taxes for a special (occupational) taxable year, the District Director will furnish him a return (Form 11), which must be filled out and executed under

penalty of perjury, for registration and tax payment for the succeeding taxable year if that person intends to continue in business. Properly completing. executing, and timely filing of a return (Form 11) will constitute compliance with section 5802, I.R.C. A person doing business under a style or trade name must give his own name, followed by his style or trade name. In the case of a partnership, unincorporated association, firm, or company, other than a corporation, its style or trade name must be given, also the name of each member and his place of residence. The class of business, as described in 8 179.51, and the period for which special (occupational) tax is due, must also be stated.

§ 179.52 Employer identification number.

The employer identification number (defined at § 301.7701-12 of this chapter) of the taxpayer who has been assigned such a number shall be shown on each Form 11, including amended Form 11, filed pursuant to the provisions of this part for any period commencing after September 30, 1962. Failure of the taxpayer to include his employer identification number on Form 11 may result in assertion and collection of the penalty specified in § 301.6676-1 of this chapter. (75 Stat. 828; 26 U.S.C. 6109, 6676)

§ 179.52b Application for employer identification number.

(a) An employer identification number will be assigned pursuant to application on Form SS-4 filed by the taxpayer. Form SS-4 may be obtained from the district director with whom the Form 11 is required to be filled.

(b) An application on Form SS-4 for an employer identification number shall be made by every taxpayer who filed a return on Form 11 before October 1, 1962, for the period ending June 30, 1963, and who has neither secured an employer identification number nor made application therefor prior to October 1, 1962. Such application on Form SS-4 shall be filed on or before October 8, 1962.

(c) An application on Form SS-4 for an employer identification number shall be made by every taxpayer whose first return on Form 11 is filed on or after October 1, 1962, but who prior to the filling of such first return on Form 11 has neither secured an employer identification number nor made application therefor. Such application on Form SS-4 shall be filed on or before the seventh day after the date on which such first return on Form 11 is filed.

(d) Each taxpayer shall make application for and shall be assigned only one employer identification number. regardless of the number of places of business for which the taxpayer is required to file Form 11.

(75 Stat. 828; 26 U.S.C. 6109)

§ 179.52c Execution of Form SS-4.

The application on Form SS-4, together with any supplementary statement, shall be prepared in accordance with the form, instructions, and regulations applicable thereto, and shall set forth fully and clearly the data

therein called for. The application shall be filled with any district director with whom a return on Form 11 will be filed by the person who is required to make the application. The application shall be signed by (a) the individual, if the person is an individual; (b) the president, vice president, or other principal officer, if the person is a corporation; (c) a responsible and duly authorized member or officer having knowledge of its affairs, if the person is a partnership or other unincorporated organization; or (d) the fiduciary, if the person is a trust or estate.

(75 Stat. 828; 26 US.C. 6109)

§ 179.53 The special tax stamp, receipt for special (occupational)

Every current special tax stamp issued to a taxpayer must, under penalty of the law, be kept posted conspicuously on the premises where the business is operated.

§ 179.55 Certificates in lieu of stamps lost or destroyed.

When a special tax stamp has been lost or destroyed, such fact should be reported to the District Director at once for the purpose of obtaining from him a certificate of payment in lieu of the lost or destroyed special tax stamp. Such certificate must be posted in place of the stamp; otherwise liability will be incurred for failure to post the stamp. § 179.56

Engaging in business at more than one location.

A person must pay the special (occupational tax for each location where he engages in any business taxable under section 5801, I.R.C. However, a person paying a special (occupational) tax covering his principal place of business may utilize other locations solely for storage of firearms without incurring special (occupational) tax liability at such locations. A manufacturer, upon the single payment of the appropriate special (occupational) tax, may sell firearms of the type(s) covered by such tax, if such firearms are of his own manufacture, at the place of manufacture and at his principal office or place of business if no such firearms, except samples, are kept at such office or place of business. When a person changes the location of a business for which he has paid the special (occupational tax. he will be liable for another such tax unless the change is properly registered with the District Director, as provided in 179.64.

year, the special (occupational) tax imposed on each such business must be paid.

§ 179.58 Partnership liability.

Any number of persons doing business in partnership at any one location shall be required to pay but one special (occupational) tax.

§ 179.59 Single sale.

A single sale, unattended by circumstances showing the one making the sale to be engaged in business, does not create special (occupational) tax liability.

CHANGE OF OWNERSHIP

§ 179.60 Changes through death of

owner.

Whenever any person who has paid special (occupational) tax dies, the surviving spouse or child, or executors or administrators, or other legal representatives, may carry on such business for the remainder of the term for which tax has been paid without any additional payment, subject to the conditions hereinafter stated. If the surviving spouse or child, or executor or administrator, or other legal representative of the deceased taxpayer continues the business, such person must, within 30 days after the date on which the successor begins to carry on the business, file with the District Director a new return, Form 11. The return thus executed must show the name of the original taxpayer, together with the basis of the succession. (As to liability in case of failure to register, see § 179.66.) § 179.61

Changes through bankruptcy of owner.

A receiver or referee in bankruptcy may continue the business under the stamp issued to the taxpayer at the place and for the period for which the tax was paid. An assignee for the benefit of creditors may continue business under his assignor's special tax stamp without incurring additional special (occupational) tax liability. In such cases, the change must be registered with the District Director in a manner similar to that required by § 179.60.

§ 179.62

Change in partnership or unincorporated association. When one or more members withdraw from a partnership or an unincorporated association, the remaining member, or members, may, without incurring additional special (occupational tax liability, carry on the same business at the same location for the balance of the taxable period for which special (occupational) tax was paid. provided any such change shall be registered in the same manner as required by $179.60. Where new member(s) are taken into a partnership or an unincorporated association, the new firm so constituted may not carry on business under the special tax stamp of the old firm. The new firm must file a return, pay the special (occupational) tax and register in the same manner as a person who first engages in business is required to do under

§ 179.52, even though the name of the new firm may be the same as that of the old. Where the members of a partnership or an unincorporated association, which has paid special (occupational tax, form a corporation to continue the business, a new special tax stamp must be taken out in the name of the corporation.

§ 179.63 Change in corporation.

Additional special (occupational) tax is not required by reason of a mere change of name or increase in the capital stock of a corporation if the laws of the State of incorporation provide for such change or increase without the formation of a new corporation. A stockholder in a corporation who after its dissolution continues the business incurs new special (occupational) tax liability.

CHANGE OF BUSINESS LOCATION

§ 179.64 Notice by taxpayer.

Whenever a taxpayer removes his business to a location other than specified in his last special (occupational) tax return (see $179.52), he shall, within 30 days after the date of removal, file another return (Form 11). Such return shall be designated as "removal registry", set forth the time of removal, and the address of the new location. The taxpayer's special tax stamp must accompany the return for notation by the District Director of the change of location. As to liability in case of failure to register a change of location within 30 days, see 179.66.

PENALTIES AND INTEREST

§ 179.65 Failure to pay special (orcupational) tax.

Any person who engages, in a business taxable under section 5801, I.R.C., without timely payment of the tax imposed with respect to such business (see

179.52) shall be liable for such tax, plus the interest and penalties thereon. In addition, such person may be liable for criminal penalties under section 5861, I.R.C.

§ 179.66 Failure to register change or removal.

Any person succeeding to and carrying on a business for which special (occupational tax has been paid, and any taxpayer removing his business with respect to which special (occupational) tax has been paid to a place other than that for which tax was paid, without registering such change or removal within 30 days thereafter, will incur liability to an additional payment of the tax, addition to tax and interest. as provided in sections 5801, 6651, and 6601, respectively, Internal Revenue Code of 1954, for failure to make return (see 179.67) or pay tax, as well as to fine and imprisonment for carrying on business without payment of special (occupational) tax (see $179.65).

§ 179.67 Delinquency.

Any person liable for special (occupational tax under section 5801, I.R.C., who fails to file a return (Form 11), as prescribed, will be liable for a delinquency penalty computed on the

amount of tax due unless a return (Form 11) is later filed and failure to

file the return timely is shown to the satisfaction of the District Director to be due to reasonable cause. The delinquency penalty to be added to the tax is 5 percent if the failure is for not more than one month, with an additional 5 percent for each additional month or fraction thereof during which failure continues, not to exceed 25 percent in the aggregate (section 6651, LR.C.). However, no delinquency penalty is assessed where the 50 percent addition to tax is assessed for fraud (see § 179.68).

§ 179.68 Fraudulent return.

If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment, but no delinquency penalty shall be assessed with respect to the same underpayment (sec. 6653, I.R.C. 1954).

APPLICATION OF STATE LAWS

§ 179.69

State regulations. Special tax stamps are merely receipts for the tax. Payment of tax under Federal law confers no privilege to act contrary to State law. One to whom a special tax stamp has been issued may still be punishable under a State law prohibiting or controlling the manufacture, possession or transfer of firearms. On the other hand, compliance with State law confers no immunity under Federal law. Persons who engage in the business of importing, manufacturing, or dealing in firearms, in violation of the law of a State. are nevertheless required to pay special (occupational) tax as imposed under the internal revenue laws of the United States.

RECORD OF SPECIAL TAXPAYERS FOR PUBLIC

Each District Director shall prepare and keep for public inspection, on Record 10, an alphabetical list of the names of all persons who have paid special (occupational) taxes within his district. Record 10 will show the time. place, and business for which such special (occupational) taxes have been paid. Upon application of any prosecuting officer of any State, county, or municipality, the District Director will furnish a certified copy of Record 10, for which a fee of $1 for each one hundred words or fraction thereof in such certified copy or copies may be charged.

SUBPART D-TAX ON MAKING FIREARMS § 179.75 Rate of tax.

Except as provided in §§ 179.82. 179.83. and 179.84, a tax of $200 is imposed on the making of any firearm in the United States (whether by manufacture, putting together, alteration. any combination thereof, or otherwise). Such tax shall be paid in advance of the making of the firearm by the person making the firearm. Payment of the tax on the making of a firearm shall be represented by a $200 adhesive stamp bearing the words "National Firearms Act"

Except as provided in §§ 179.82, 179.83 and 179.84 every person intending to make a firearm must declare his intention in writing on Form 1A (Firearms) to make such firearm. The declaration shall show (a) the name and address of the maker, and, if the maker is other than a natural person, the name and address of the principal officer or authorized representative thereof; (b) the serial number, model, length of barrel, trade name, and other marks identifying the firearm; and (c) such additional information as may be required on Form 1A (Firearms). A "National Firearms Act" stamp (see $179.75) must be affixed to the original declaration, in the space provided therefor, and properly canceled (see § 179.81). Form 1A (Firearms) and appropriate tax stamp may be obtained from any District Director of Internal Revenue. § 179.78 Identification of declarant.

If the declarant is an individual, he shall attach to each copy of the declaration an individual photograph of himself, taken within one year prior to the date of such declaration, and shall affix his fingerprints to such declaration. The fingerprints must be clear for accurate classification and should be taken by someone properly equipped to take them. The declaration must be supported by a certificate of the local chief of police, sheriff of the county, United States attorney, United States marshal, or such other person whose certificate may in a particular case be acceptable to the Director, Alcohol and Tobacco Tax Division, certifying that he is satisfied that the fingerprints and photograph appearing on the declaration are those of the declarant and that the firearm is intended by such person for lawful purposes. § 179.79

Procedure for approval of

declaration.

The declaration of intent to make a firearm, Form 1A (Firearms), must be forwarded directly, in duplicate, by the maker of the firearm to the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington 25, D.C.

The Director, Alcohol and Tobacco Tax Division, will consider the application for approval or disapproval. If the application is approved, the Director, Alcohol and Tobacco Tax Division, will return the original thereof to the maker of the firearm and retain the duplicate. Upon receipt of the approved declaration, the maker is authorized to make the firearm described therein. The maker of the firearm shall not, under any circumstances, make the firearm until the declaration, satisfactorily executed, with the "National Firearms Act" stamp attached, has been forwarded to the Director, Alcohol and Tobacco Tax Division, and has been approved and returned by him. If the application is disapproved. the original Form 1A (Firearms) with the "National Firearms Act" stamp attached thereto will be returned to the maker with the reasons for disapproval stated on the form.

Where a firearm which has been made in compliance with section 5821 of Internal Revenue Code of 1954, is to be transferred subsequently, the transfer provisions of the firearm laws and regulations must be complied with. (See Subpart E).

§ 179.81 Cancellation of stamp.

The person amxing to a Form 1A (Firearms) a "National Firearms Act" stamp shall cancel it by writing or stamping thereon, in ink, his initials, and the day, month and year, in such manner as to render it unfit for reuse. The cancellation shall not so deface the stamp as to prevent its denomination and genuineness from being readily determined.

EXCEPTIONS TO TAX ON MAKING FIREARMS § 179.82 Registered manufacturers.

The tax on the making of a firearm and the requirements as to use of a form declaring the intention to make a firearm are not applicable to manufacturers who have paid special (occupational tax and registered as required by sections 5801 and 5802 of the Internal Revenue Code of 1954. However, such manufacturers must keep the records required by § 179.150 and make the returns required by § 179.151.

§ 179.83 Altering a firearm, the making of which has previously been taxed.

No tax will be imposed on the making of a firearm from another firearm with respect to which a making tax has been paid under section 5821(a), I.R.C., prior to such making. However, the person so altering or converting such firearm shall notify the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington 25, D.C., in writing immediately thereafter, giving a complete description of the firearm so altered or converted and indicating the changes made.

§ 179.84 Making a firearm for use of Government agencies or peare of. ficers.

The tax on the making of a firearm and the requirements as to use of a form declaring the intention to make a firearm are not applicable to any person making a firearm for the use of (a) the United States Government, any State, Territory, or possession of the United States, any political subdivision thereof, or the District of Columbia, or (b) any peace officer designated in 179.104. However, the person making such firearm shall notify the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington 25, D.C., in writing, immediately thereafter giving a complete description of the firearm so made, identifying the agency for which the firearm was made and stating under the penalties of perjury that he has been duly commissioned to perform such act. Should it afterwards be determined that the maker was not entitled to the tax exemption, tax and penal liability will be incurred.