Articles Posted in ATF 41F ( 41P)

Looks like eForms is down so no new submissions electronically before the implementation of 41F.

How Does Final Rule 41F Change Current NFA Regulations?

The final rule affects the NFA regulations by:

• defining the term “responsible person,” as used in reference to a trust, partnership, association, company, or corporation;
• requiring responsible persons of such trusts or legal entities to complete ATF form 5320.23, National Firearms Act Responsible Person Questionnaire and to submit photographs and fingerprints when the trust or legal entity files an application to make an NFA firearm or is listed as the transferee on an application to transfer an NFA firearm;
• requiring that a copy of all applications to make or transfer a firearm, and the specified form for responsible persons (5320.23), be forwarded to the chief law enforcement officer (CLEO) of the locality in which the applicant/transferee or responsible person resides; and
• eliminating the requirement for certification signed by the CLEO.
• In addition, the final rule adds a new section to ATF’s regulations to address the possession and transfer of firearms registered to a decedent.

Who is a Responsible Person?

In the case of an unlicensed entity, including any trust, partnership, association, company (including any Limited Liability Company (LLC)), or corporation, any individual who possesses, directly or indirectly, the power or authority to direct the management and polices of the trust or entity to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on behalf of, the trust or legal entity.

In the case of a TRUST, those persons with the power or authority to direct the management and policies of the trust include any person who has the capability to exercise such power and possesses, directly or indirectly, the power or authority under any trust instrument, or under State law, to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on behalf of, the trust.

Examples of who may be considered a responsible person of a trust or legal entity include:

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Tonight we found a copy of the proposed final rule for 41P.  It can be downloaded from this link 41P final.pdf

In general, most of what the public was concerned about was removed from 41P by changing the CLEO Certification requirement that was proposed for trusts to be a CLEO Notification.

It will not take effect until 180 days after publication in the Federal Registry so there is still time to purchase items under the existing rules and more reason than ever to create your Gun Trust now.

When 41F the new name for 41P takes effect it will not be retroactive.  That is all applications submitted under the current rules will continue to be processed. In addition, there is no requirement to comply with the new rules for previously approved applications or legal entities like Gun Trusts.  On page  198 ATF states “The final rule is not retroactive and therefore the final rule will not apply to applications that are in ‘pending’ status, or to previously approved applications for existing legal entities and trusts (Gun Trusts) holding NFA items.”

While I am still reading the 248 pages, so far here are the highlights.

1. The final rule only requires that the applicant maker or transferee, including each responsible person for a trust or legal entity, provide a notice to the appropriate State or local official that an application is being submitted to ATF
2. The final rule also adds a new section to ATF’s regulations to address the possession and transfer of firearms registered to a decedent. The new section clarifies that the executor, administrator, personal representative, or other person authorized under State law to dispose of property in an estate may possess a firearm registered to a decedent during the term of probate without such possession being treated as a “transfer” under the NFA. It also specifies that the transfer of the firearm to any beneficiary of the estate may be made on a tax-exempt basis.

Amendments to§ 479.62 proposed to change the following for Trusts:
1. Provide that all information on the Form 1 application must be furnished for each responsible person of the applicant;
2. Each responsible person must comply with the identification requirements prescribed in the proposed§ 479.63(b); and
3. Require the applicant (including, if other than an individual, any responsible person), if an alien admitted under a nonimmigrant visa, to provide applicable documentation demonstrating that the applicant falls within an exception to 18 U.S.C. 922(g)(5)(B) or has obtained a waiver of that provision.

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Many of our Gun Trust clients and readers have asked what they can do to help prevent the implementation of 41P.

As you may be aware, Firearms Industry Consulting Group®  has reported that the Administration is working through the Holiday Season on new regulations to limit our Second Amendment rights and that ATF intends to move forward with ATF-41p in the New Year.

The efforts to strip funding for 41P have been removed from the latest budgets and as a result will have no effect on implementing 41P.  What will be implemented and when it will be effective is still unknown, but it looks like that there will need to be an appeal.  Below are the two amendments that were removed that were designed to be an end run around 41P.

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