The last couple of years with the fight against ATF 41P. The rule was finalized and published in the Federal Register on the morning of (1/15/2016).
The new ATF 41F brings many new changes to how this industry works, but here are the main things to keep in mind:
Here is the full Ruling
The New Rule Will Go Into Effect On July 13, 2016
All applications that have been either approved, or are in process on 7/13/2016 will be processed under the existing rules; so, we’ll be pushing hard as we get close to that date to ensure everything gets to the NFA Branch before the change happens.
A New Form 5320.23 Will Be Required For All Responsible Persons
When registering using a trust or corporation, a new Form 5320.23 will be required for EVERY RESPONSIBLE PERSON. This form will be sent to the NFA Branch as well as to your CLEO with each silencer purchase.
Note that this form will also require a recent passport photo as you would to renew or get your passport.
Fingerprints Will Be Required For Suppressors & Other NFA Purchases Using Trusts Or Corporations
This is definitely going to be the biggest problem for the industry & customers. As with individual applications, trusts & corporations will now require 2 physical fingerprint cards for every responsible person.
It is NOT retroactive
Any Form 1 (manufacture) or Form 4 (transfer) applications submitted to the ATF postmarked July 13, 2016 or earlier will be evaluated according to the current rules for making and transferring NFA items—even if your forms aren’t approved until after July 13, 2016. It’s a good idea to start the process now if you are considering acquiring an NFA item.
If You Register Using A Trust Or Corporation, You Will NOT Be Required To Notify The NFA Branch Of Changes After An Approval
In the initial ATF 41P proposal, there was a requirement to notify the NFA Branch with a Form 5320.23 every time your responsible persons changed.
Fortunately, the requirement was removed – and there is specifically no requirement to notify the NFA Branch if you add or remove responsible persons after getting an approval.
Its instructions show what responsible persons must include and do when submitting Form 1 or 4 applications
Rule 41F mandates that any responsible person submitting a Form 1 or 4 application on behalf of a trust must include a 2×2-inch photograph taken within the year prior to the date of the application, two fingerprint cards, a completed NFA Responsible Person Questionnaire (ATF Form 5320.23), and a copy of their trust. All of these items must be included along with the $200 “tax stamp” check or money order made to the ATF. This effectively requires that trust applicants submit the same information with their forms that individual applicants are currently required to.
In addition, after the effective date of the rule, ALL responsible persons of a trust must submit photos, fingerprints, and Form 5320.23s for any given application. Further, an applicant must send a completed copy of their form to their local chief law enforcement officer (CLEO) and all responsible persons must also submit Form 5320.23s to their CLEOs.
Does not require your CLEO sign-off
One of the good things to come out of 41F is the removal of the CLEO sign-off requirement for individual applicants, eliminating the ability of anti-NFA officials to arbitrarily bar Americans from owning items like suppressors and machine guns. Now individual applicants simply need to submit a notification to their local CLEO by way of sending them a copy of all pertinent documents.
While trust applicants were not required to obtain CLEO sign-off before, 41F mandates that they must notify their local CLEO of any manufacture or transfer of an NFA item.
NFA Trusts are still applicable up to and after July 13, 2016
Following the full implementation of 41F, trusts will still be eminently useful as means for inexpensively transferring NFA items to one’s descendants in the event of trust-holder’s death. In addition, trusts are still the most legally-sound method of responsibly sharing NFA items with others.