The ATF published their final rule on 41P on January 4, 2016. 41P will then change to 41F and become law 180 days after publication in the Federal Registry. (Edit: Publication is scheduled for January 15, 2016.) As stated in the ATF’s Final Rule, once the law takes effect, individual applicants and “responsible person(s)” of NFA Gun Trusts, Corporations, and LLCs will be required to provide Photo ID, fingerprints, submit to a background check and notify the Chief Law Enforcement Officer of their jurisdictions when registering to own or manufacture a NFA Firearm. The language of who is a Responsible Person can be debated based on strict reading of the language (person who manage or control the trust) versus the ATF’s intent (of anyone who will possess or transport the NFA firearm). It will ultimately come down to the ATF’s interpretation of who a responsible person will be.
Please contact The Kim Firm, LLC if you have any questions about 41F or would like discuss your current NFA Gun Trust.
For the fans of the most useful of 66mm liquid vessel launchers, the Can Cannon, was recently classified as a short barreled rifle (SBR) when mounted on rifle receiver and Any Other Weapon (AOW) when mounted to a pistol receiver. Unmounted there is no specific classification as it is not considered a firearm. You can see their customer letter below…
X Products, LLC a Portland, OR company and maker of the Can Cannon is revising their design for the ATF to hopefully declassify their device as a SBR/AOW and will hopefully get back to working on what we really want… Grappling Hook… Net Launcher… Dog Trainer… Lawn Darts Launcher… Harpoon…
The ATF released an advisory earlier this month regarding NFA scams targeting FFLs and firearm purchasers. At Kim Firm Guns we feel it is important to perform your due diligence before entering into any firearm purchase… or for that matter, any private party purchase originating from the internet.
In addition to the ATF guidelines listed below, we recommend creating a valid binding sales contract prior to any funds changing hands for deposit. Please contact The Kim Firm, LLC if you’re considering purchasing an NFA item that is similar to this scenario or require any other information regarding private party NFA firearm transactions.
The ATF Advisory is copied below.
Scams Using Fraudulent or Manipulated NFA Registration Documents
June 5, 2015
TO ALL FEDERAL FIREARMS LICENSEES (FFLs) AND FIREARM PURCHASERS
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is advising the public to be aware of fraudulent National Firearms Act (NFA) tax registration forms being used to sell NFA firearms. Some individuals are presenting altered NFA Form 4’s to prospective buyers in order to obtain a deposit, but never deliver the firearms.
A typical scam starts with a perpetrator (seller) claiming ownership of an NFA firearm through an altered Form 4, and then contacting an FFL to see if that FFL is interested in purchasing the NFA firearm. If the FFL expresses interest, the seller then requests that the FFL pay a percentage of the money upfront via cashier’s check and the remainder of the money after the ATF Form 4 paperwork is finalized. All communication is done via email. If the fraudulent documents are printed, they appear to be rough scans of an original approved ATF Form 4. However, if the documents are viewed on a computer screen and are magnified, it often becomes evident that various sections have been altered.
To avoid this scam, FFL’s and individuals should be aware of the following:
• The seller usually communicates via email.
• In box 1 (Type of Transfer), the tax stamp should be legible with a precise area for the serial number of the weapon to be hand written. The tax stamp has proven to be the most effective way to detect a fraudulent form. The perpetrators often paste a serial number over the serial number on the stamp. Upon closer inspection, it is often possible to detect the outline of the fraudulent serial number.
• In box 3a (Transferor), if the firearm was previously transferred from an FFL, the name of the FFL is often misspelled. A simple internet query for that FFL may assist those who suspect a scam.
If you believe you have been contacted by an individual utilizing fraudulent NFA forms, or have otherwise come in contact with a fraudulent or manipulated form, please contact your local ATF field office as soon as possible for assistance. A list of local field offices can be found at http://www.atf.gov/content/contact-us/local-atf-office.
As we reported in April from the NRA Annual Meeting and as May comes to a close, the BATFE has fallen behind their May 2015 deadline to review the thousands of public comments received during the ATF 41P comment period affecting NFA Gun Trusts. Therefore the ATF has set a new deadline of December 2015 for 41P Final Action.
Today, the Supreme Court clarified the government’s position of possession and ownership of firearms by convicted felons. In a unanimous opinion they ruled that felons would not lose the ability to sell or transfer their firearms (as long as they were not used in a crime). This will allow felons to transfer, sell, or place their firearm collection in a NFA Gun Trust for their descendants, rather than be destroyed by the government. All firearms will remain in government control until the transfer is approved by the court and ultimately completed. Read more about the ruling at the link.
Kim Firm Guns has teamed with our friends at Dixie Ammo Dump to host our Third Annual Dixie Ammo Dump Machine Gun Shoot on May 16th at our newly improved KFG Super Secret Range. We invite you come join us for a day of fun and machine guns!
This May, our friend and special guest Craig “Sawman” Sawyer will be on the firing line. If you’re not familiar with Mr. Sawyer, he is a former DEVGRU SEAL and SEAL Sniper Instructor, History Channel “Top Shot” and Animal Planet “Battleground: Rhino Wars” star, and the instructor for our Kim Firm Guns Precision Rifle Course in February. We were truly honored to receive his invaluable instruction and are looking forward to blasting targets with him again!
We encourage you to register for your slot at this limited event by contacting The Kim Firm, LLC at 678.990.3038 or using the contact form below!
It was great to meet up with longtime friends, clients, and manufacturers. The relationship between the firearm industry and consumers has never looked stronger.
The glitz and glamour of the NRA Annual Meeting is but one great part of the weekend, the nuts and bolts… the “dull” regulation & policy side is what interests us equally at Kim Firm Guns. After several hours of speakers throughout the day, Mr. William J. Ryan from the BATFE took the podium to address the current state of the BATFE, NFA, and Gun Trusts. The talk from Mr. Ryan gave us three takeaways:
What do we mean? One of the primary consumer causes of the BATFE NFA Gun Trust backlog is improperly designed trusts that have been pirated/downloaded/copied from the internet or created by improperly executed one-size-fits-all software. Mr. Ryan told the audience that the BATFE examines each and every trust for accuracy and consistencies, if any required fields are blank or improperly executed, the trust is not accepted.
The Truth About Guns highlights the great example of an anonymous person who uploads their BATFE approved gun trust to the internet, where it is then downloaded by countless users, modified incorrectly, which then results in numerous rejected gun trusts. Others modified the gun trust form to be “technically correct” and approved, but failed to modify the beneficiary… which results in leaving their NFA items upon their death to a certain woman in KS… imagine her surprise when she finds out she’ll be inheriting thousands of NFA items and accessories from various deceased trust holders!
Mr. Ryan also mentioned that the BATFE has practically no problems with NFA Gun Trusts prepared by attorneys.
You don’t do your own dental work, so please don’t do your own legal work!
In the third takeaway , Mr. Ryan addressed the looming 41P decision, first published in the Federal Register in SEPT 2013… the proposed fingerprint, photograph, and CLEO requirements for NFA Gun Trusts holders. He said, the BATFE is still responding to the 9,500 comments submitted during the comment period… which means we are unsure if 41P will actually be addressed next month.
As always, we’ll keep our eyes open and ears to the ground to bring our KFG clients the latest!
If you live in Buffalo, NY, the answer may be yes.
While not a cheerful topic of discussion, the transition of your firearms upon your passing may create certain difficulties for your heirs. However, a properly executed NFA Gun Trust may help alleviate legal problems for your decedents.
In addition to allowing more than one person to possess and use the firearms held in a NFA Gun Trust you will also benefit from keeping your firearms in your NFA Gun Trust even after your death, avoiding the usual transfer requirements.
You may help the executor of your estate. The executor is the person who is responsible for gathering your assets, paying your debts, and distributing the remainder, they may not be familiar with the rules about ownership and possession of NFA firearms and other weapons.
You may avoid probate. Because your firearms are held by a NFA Gun Trust, they do not normally need to go through probate at your death.
You may avoid possible future restrictions on gun transfers due to changing legislation or the political environment.
Why is this important? As the nature of firearm ownership is constantly changing, responsible gun owners need to ensure that we, our families, and our firearms are safe.
Otherwise we can point to what is happening in NY State upon the death of responsible gun owners… read the article from NOV 2014 at the link below.
The Kim Firm, LLC provides preparation of Georgia NFA Gun Trusts and the formation of Georgia based corporate entities (Corporations and LLCs) for ownership of firearms and firearm accessories that are governed by the National Firearm Act and related federal and state laws.
Jin H. Kim, Esq. is available to serve clients throughtout the state of Georgia. Clients include numerous companies in the firearms industry, including Federal Firearms Licensed (FFL) gun dealers, Class 3 Special Occupation Tax (SOT) dealers and manufacturers, defense contractors, training consultants, gun ranges, and individual collectors. For clients interested in his services, we are ready to serve you at your convenience by appointment, phone and email.