Obtaining a tax stamp can be confusing for those purchasing an NFA item for the first time. Under the National Firearms Act, suppressors, short-barreled rifles and shotguns, machine guns, and those weapons that fall under the AOW label (any other weapon) are managed by a registration and tax stamp system.
There are several types of transfers, commonly referred to by the ATF form required for their processing. Some of the most frequently used are the Form 4, the Form 1, and the Form 5.
Form 4
If you are looking to buy a weapon or accessory that is pre-made by a manufacturer, whether from a dealer or an individual, you will be dealing with the Form 4. This application is filled out between the current owner of the item (the seller) and the future owner of the item (the buyer). If the seller is a dealer, they will be requesting the suppressor from the manufacturer via a Form 3 if they do not already have it in stock.
The process begins with the Form 3 transfer from manufacturer to dealer. Then, the buyer purchases the suppressor from the dealer, who then assists the buyer in filling out a Form 4. That form requires fingerprints, a photo ID, and a $200 tax stamp fee in order for it to be processed. These documents are then sent off to the ATF for approval. The wait time for a Form 4 transfer varies and can be tracked on the ATF’s website.
As of February 2024, Form 4 transfers are taking around 200 days for approval if processed electronically. As soon as the Form 4 is approved, the paperwork is sent directly to the dealer. At that point, the buyer may go take possession of the suppressor. If the sale is between two private individuals, the Form 4 is made out from the seller to the buyer. The seller maintains possession of the suppressor until the approved tax stamp is received.
When using a trust for the Form 4 application, all the above remains the same except that the trust name is used instead of the individual’s name, and a copy of the trust document is included along with the paperwork. The tax stamp is then issued in the trust name.
Form 1
When an individual or a trust wants to make their own weapon, they must first get approval for the build from the ATF via a Form 1. This process remains the same whether the person is adding a short barrel to an AR-15 or machining their own suppressor.
The first step towards obtaining this tax stamp is to fill out the Form 1 with detail on how the person intends to build a new item or modify an existing one. The Form 1 can be applied for in an individual’s name or with a trust.
Once the Form 1 tax stamp is issued, the parts may be obtained to perform the build. It is unlawful to possess the components of a build before receiving the approved tax stamp. Once the item is completed, it will need to be engraved with the new weapon information, such as individual or trust name, serial number, and other specifications of the weapon or accessory.
Form 1 processing times are generally much shorter than for the Form 4. Currently, electronically submitted Form 1s are receiving approval in approximately 55 days.
Form 5
The Form 5 is a special kind of tax stamp. Whereas the Form 1 and Form 4 require a $200 transfer tax fee, the Form 5 is a tax-free stamp. It is used to transfer ownership of an NFA weapon or accessory upon the death of the owner.
When someone dies who did not have a trust, a Form 5 application must be completed for each NFA item they possessed. The transfer must be made to the executor of the person’s will and transferred into their individual name. When the deceased had a trust for their NFA items, a Form 5 transfer is unnecessary because the property remains in the trust name.
The person or persons who have been designated as beneficiaries can simply take possession of the property without going through any further paperwork. This represents a key advantage to purchasing NFA weapons in the name of a trust, as it eases the burden of estate planning and the anxiety around possession of restricted weapons after death.
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