New ATF Trust Regulation

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Jim
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New ATF Trust Regulation

Postby Jim » 19 Mar 2016 16:38

ATF New Rule Change regarding Trusts and Corporations

(Effective July 13th, 2016)

The Department of Justice (ATF) has finalized a rule change which, affects all gun trusts and corporations which seek to acquire NFA items after the effective date of the change. The rule, once effective, would require notices to CLEO of submissions of Form 1’s and Form 4’s by trusts and corporations and also fingerprint cards, photos and background checks for all trustees and responsible officers. At present there are no such requirements. The proposed change set forth in 27 CRF 479 is to become effective July 13th, 2016.

Some of the reasoning behind the proposed rule change is to prevent prohibited persons, who are responsible persons in trusts or corporations, from obtaining NFA firearms and using them to commit violent crimes.

The rule change is not retroactive and will not affect NFA items purchased by trusts and corporations prior to the effective date of the change. In short, according to the Office of Management and Budget, until the rule change becomes effective, July 13th, 2016, NFA gun trusts and corporation will continue as they have in the past and will not be required to obtain CLEO signoffs, or have trustees or responsible persons submit photos, fingerprint cards and background checks for Form 1 and Form 4 transfers submitted to the ATF.

Be sure to submit your form1 or form4 applications prior to this date if you can. Don't put it off. Never hurts to have a couple extra form1's in the file even if you don't use it for a year or more.

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Weber
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Re: New ATF Trust Regulation

Postby Weber » 23 Mar 2016 04:23

Research times are increasing as well, so if you wait until it gets close to the deadline and submit a model or caliber that requires research to be approved prior to the form 1 going to submitted/ in process status, it could potentially delay you into the new requirements.
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