$200 Form 4 Tax

BABore · Post by **BABore** » Thu Jul 09, 2015 4:19 am

A question on payment method. I have a NFA Trust set up and am getting ready to make my first suppressor purchase. The instructions that came along with my trust suggest that it is best to set up a trust bank account so that all checks are written under the trust and not my personal bank account. A local dealer that I will likely be going through says that is not necessary. Is it? Can I simply get a bank draft/money order for the $200 tax and pay my dealer in cash?

JeffWard · Post by **JeffWard** » Thu Jul 09, 2015 5:01 am

Your wait time will start from the time your check is cashed. Depending on the volume and "efficiency" of the government workers processing you Form 4, that may take a while to cash the check. It might be handy to have one account for all your Class III transactions, but not required.

JW

Baboon · Post by **Baboon** » Thu Jul 09, 2015 6:24 am

I use a personal check with the serial number of the item on the form 4. It's easier to check to see when the check clears (which happens surprisingly fast). Once the check clears your wait begins.

AlabamaPaul · Post by **AlabamaPaul** » Thu Jul 09, 2015 7:44 am

Absolutely not necessary to bother setting up a trust checking account.

sillycon · Post by **sillycon** » Thu Jul 09, 2015 2:03 pm

The idea of the trust bank account for the transfer tax check is "legal CYA" so that there can be no argument that the trust purchased the item vs. the individual.

When I couldn't get a bank to open a trust account without major headaches, I asked my trust attorney about it and they suggested in the alternative that I go to the local drug store or grocery store and get a money order (using cash) and sign it "Joe Blow, Trustee Joe Blow Trust" or "take the chance" and send a personal check.

I did the money order bit on the first transfer or two, but after that I gave up -- now I either cut a personal check (Form 1's) or I just have the dealer add the $200 to my total and get them to cut the check (Form 4's). Reason being that I realized if it came to that level of scrutiny/detail, I'd have bigger problems to worry about so it was no longer worth the inconvenience of dealing with a money order.

BABore · Post by **BABore** » Thu Jul 09, 2015 6:31 pm

All makes sense. Thanks for all the replies.

Seems like if I were to walk into any bank and lay down $$ cash for a cashiers check. I could then sign it the XYZ Trust, with my name signed below that as the trustee and it should be legit. I got my trust fully signed off today. One of the pages that I didn't finalize was for monies loaned/assigned to the trust. That should cya any first time purchase.

YugoRPK · Post by **YugoRPK** » Thu Aug 06, 2015 11:42 pm

Dont worry about it. The ATF doesnt care where the money comes from. This stuff gets overthinked.

jreinke · Post by **jreinke** » Fri Aug 07, 2015 8:04 am

YugoRPK wrote:Dont worry about it. The ATF doesnt care where the money comes from. This stuff gets overthinked.

Don't you mean "overthunk"?

whiterussian1974 · Post by **whiterussian1974** » Mon Aug 10, 2015 2:13 pm

jreinke wrote:
YugoRPK wrote:Dont worry about it. The ATF doesnt care where the money comes from. This stuff gets overthinked.
Don't you mean "overthunk"?

Overthought. But only b/c I taught English and German in Russia for a yr.

I've heard FAR worse(r) grammer than "overthinked" over the yrs.

40G27 · Post by **40G27** » Mon Aug 10, 2015 10:19 pm

It's a tax paid for the transfer from the seller to the recipient. Technically the seller is responsible for the transfer, including paying the transfer fee/tax.

YugoRPK · Post by **YugoRPK** » Mon Aug 10, 2015 10:39 pm

40G27 wrote:It's a tax paid for the transfer from the seller to the recipient. Technically the seller is responsible for the transfer, including paying the transfer fee/tax.

Absolutely true. I hear of people setting up special bank accounts for their trust so that there would be no confusion as to what entity is paying for the device when in fact they are completely blowing it. In practice though the ATF could give a damn where the money comes from.

Part II - Tax on Transferring Firearms.
§ 5811 Transfer tax.
(a) Rate. There shall be levied, collected, and paid on firearms transferred a tax at the rate of $200 for
each firearm transferred, except, the transfer tax on any firearm classified as any other weapon under
section 5845(e) shall be at the rate of $5 for each such firearm transferred.
(b) By whom paid. The tax imposed by subsection (a) of this section shall be paid by the transferor.
(c) Payment. The tax imposed by subsection (a) of this section shall be payable by the appropriate
stamps prescribed for payment by the Secretary.

$200 Form 4 Tax

$200 Form 4 Tax

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