Rule2026-09155
Changes to National Firearms Act Tax Remittance Provisions
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 8, 2026
Effective
June 10, 2026
Issuing agencies
Justice DepartmentAlcohol, Tobacco, Firearms, and Explosives Bureau
Abstract
The Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF") is amending Department of Justice ("Department") regulations on the National Firearms Act ("NFA") to reflect statutory changes made to the NFA by the One Big Beautiful Bill Act ("OBBBA"). Among other things, the OBBBA reduced the tax remittance rate for certain NFA firearms. This rule is necessary to make conforming changes to ensure that ATF's regulations are current and consistent with the statute.
Full Text
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<title>Federal Register, Volume 91 Issue 89 (Friday, May 8, 2026)</title>
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[Federal Register Volume 91, Number 89 (Friday, May 8, 2026)]
[Rules and Regulations]
[Pages 25112-25118]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09155]
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DEPARTMENT OF JUSTICE
Bureau of Alcohol, Tobacco, Firearms, and Explosives
27 CFR Part 479
[ATF No. 2025R-45F]
RIN 1140-AA83
Changes to National Firearms Act Tax Remittance Provisions
AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives,
Department of Justice.
ACTION: Final rule.
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SUMMARY: The Bureau of Alcohol, Tobacco, Firearms, and Explosives
(``ATF'') is amending Department of Justice (``Department'')
regulations on the National Firearms Act (``NFA'') to reflect statutory
changes made to the NFA by the One Big Beautiful Bill Act (``OBBBA'').
Among other things, the OBBBA reduced the tax remittance rate for
certain NFA firearms. This rule is necessary to make conforming changes
to ensure that ATF's regulations are current and consistent with the
statute.
DATES: This rule is effective on June 10, 2026.
FOR FURTHER INFORMATION CONTACT: Office of Regulatory Affairs, by email
at <a href="/cdn-cgi/l/email-protection#660914072607120048010910"><span class="__cf_email__" data-cfemail="046b7665446570622a636b72">[email protected]</span></a>, by mail at Office of Regulatory Affairs; Enforcement
Programs and Services; Bureau of Alcohol, Tobacco, Firearms, and
Explosives; 99 New York Ave. NE, Washington, DC 20226, or by telephone
at (202) 648-7070 (this is not a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Background
The Attorney General is responsible for enforcing the National
Firearms Act (``NFA''), as amended, 26 U.S.C. chapter 53.\1\ Congress
and the Attorney General have delegated the responsibility for
administering and enforcing the NFA to the Director of ATF
(``Director''), subject to the direction of the Attorney General and
the Deputy Attorney General. See 28 U.S.C. 599A(b)(1), (c)(1); 28 CFR
0.130(a)(1)-(2); Treas. Order No. 221(2)(a), (d), 37 FR 11696-97 (June
10, 1972).\2\ Accordingly, the Department and ATF have promulgated
regulations to implement the NFA in 27 CFR part 479.
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\1\ Some NFA provisions still refer to the ``Secretary of the
Treasury.'' However, the Homeland Security Act of 2002, Public Law
107-296, 116 Stat. 2135, transferred the functions of ATF from the
Department of the Treasury to the Department of Justice, under the
general authority of the Attorney General. 26 U.S.C. 7801(a)(2); 28
U.S.C. 599A(c)(1). Thus, for ease of reference, this final rule
refers to the Attorney General where relevant.
\2\ In Attorney General Order Number 6353-2025, the Attorney
General delegated authority to the Director to issue regulations
pertaining to matters within ATF's jurisdiction, including under the
NFA, Gun Control Act, and Title XI of the Organized Crime Control
Act. ATF's jurisdiction also includes those portions of sec. 38 of
the Arms Export Control Act pertaining to permanently importing
defense articles and services and the Contraband Cigarette
Trafficking Act.
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Firearms subject to NFA provisions include machine guns; shotguns
having a barrel or barrels of less than 18 inches in length; weapons
made from a shotgun if such weapon as modified has an overall length of
less than 26 inches or a barrel or barrels less than 18 inches in
length; rifles having a barrel or barrels of less than 16 inches in
length; weapons made from a rifle if such weapon as modified has an
overall length of less than 26 inches or a barrel or barrels less than
16 inches in length; silencers; destructive devices; and any other
weapons (``AOWs'') as defined by the Act. 26 U.S.C. 5845(e). Section
5841 of the NFA requires the Attorney General to maintain a central
registry of NFA firearms in the United States that the United States
does not possess or are not under its control. The registry is called
the National Firearms Registration and Transfer Record (``NFRTR''). All
firearms must be registered by their maker, manufacturer, or importer.
Section 5821 sets forth the tax that persons making NFA firearms must
pay, and section 5822 provides that makers must submit a request to the
Attorney General and receive approval before making an NFA firearm. The
term ``make'' under the NFA includes ``manufacturing (other than by one
qualified to engage in such business under this chapter), putting
together, altering, any combination of these, or otherwise producing a
firearm.'' 26 U.S.C. 5845(i). Section 5811 sets forth the tax that a
person wishing to transfer an NFA firearm must pay, and section 5812
provides that transferors must submit a request to the Attorney General
and receive approval before transferring an NFA firearm to a given
transferee. The NFA provides that a transfer includes ``selling,
assigning, pledging, leasing, loaning, giving away, or otherwise
disposing of'' a firearm. 26 U.S.C. 5845(j).
Transfer taxes in the amount of $200 were established in 1934 when
the NFA was enacted. Taxes on making NFA firearms in the amount of $200
were established in 1968 when the NFA was revised. Under the NFA, ATF
also collects special (occupational) taxes from federally licensed
importers, manufacturers, and dealers in NFA firearms. 26 U.S.C. 5801.
While tax revenues from sales of non-NFA firearms and ammunition are
generally allocated to the Federal Aid to Wildlife Restoration Fund for
wildlife restoration and hunter education and safety, 16 U.S.C.
669b(a)(1), taxes collected from NFA-generated tax receipts are
deposited into the General Fund of the Treasury. Congress has
previously considered, but has not passed, various proposals pertaining
to changing the taxing and registering provisions for NFA firearms.
On July 4, 2025, the OBBBA became law. Public Law 119-21. Section
70436 of the OBBBA amended 26 U.S.C. 5811(a) to require that the
transfer tax for all firearms regulated under the NFA, other than
machine guns and destructive devices, be reduced to $0. Similarly, this
section amended 26 U.S.C. 5821(a) to require that the making tax for
all NFA firearms, except machine guns and destructive devices, also be
reduced to $0. Accordingly, ATF is amending 27 CFR 479.61, 479.62,
479.81, 479.82, and 479.84 to reflect the changes to the statute and to
make minor agency procedure and plain writing edits as described below.
II. Final Rule
The OBBBA specified that the tax reduction amendments to the NFA
would be effective on January 1, 2026, at which point the NFA making
and transfer taxes for NFA firearms other than machine guns and
destructive devices would be reduced to $0. As a result, those
statutory changes have already occurred. ATF is issuing this final rule
to make conforming changes to the tax amounts within ATF's
corresponding regulatory provisions under 27 CFR part 479. Although ATF
is revising its rule to reflect that OBBBA reduced the tax amount for
these NFA firearms to $0, all other regulatory provisions of the NFA
application and registration process remain in full force and effect.
In addition, the rule makes minor administrative edits to allow the ATF
approval stamp on making and transfer applications to be electronic and
to make the revised provisions easier to read.
[[Page 25113]]
A. Making Tax Amendments (Sec. Sec. 479.61 and 479.62)
Section 479.61 reiterates the requirement and scope of the making
tax on NFA firearms. While the existing section currently mirrors pre-
OBBBA statutory language of a $200 tax on ``each firearm made,'' this
rule aligns the section with the OBBBA by narrowing the scope of the
$200 tax to only machine guns and destructive devices and reducing the
tax on silencers, short-barreled rifles, short-barreled shotguns, or
AOWs to $0.
In addition, the rule revises Sec. 479.61 to allow the statutorily
required NFA stamp, which shows that the maker paid the tax and that
ATF has approved the application, to be in electronic form or other
form designated by the Director. ATF is doing this in accordance with
technological developments and government-wide initiatives to implement
electronic transactions. To make this section easier to read, the rule
divides it into two paragraphs, with the stamp requirements moved to a
new Sec. 479.61(b).
Section 479.62 governs the process by which an individual may
legally make an NFA firearm by submitting ATF Form 5320.1, Application
to Make and Register NFA Firearm (``Form 1''). ATF must approve the
Form 1 application before the person may make the firearm. This rule
revises Sec. 479.62(b)(1) to reflect the reduced tax rate of $0 for
making silencers, short-barreled rifles, short-barreled shotguns, or
AOWs. The existing regulation currently requires the pre-OBBBA
remittance of $200 for all firearms made under this provision.
B. Transferring Tax Amendments (Sec. Sec. 479.81, 479.82, and 479.84)
Section 479.81 reiterates the requirement and scope of the transfer
tax as applicable to all NFA firearms transferred within the United
States and requires that the tax-paid status be represented by an
``adhesive'' stamp affixed to the application form. This rule revises
Sec. 479.81 to allow the statutorily required NFA tax-paid stamp,
which shows that the transferor paid the tax and that ATF has approved
the application, to be in electronic form or other form designated by
the Director. ATF is making this change in accordance with
technological developments and government-wide initiatives to implement
electronic transactions.
Section 479.82 sets forth the required tax rate for transferring an
NFA firearm. The existing section currently mirrors the pre-OBBBA
statutory language of a transfer tax ``at the rate of $200 for each
firearm transferred, except that the transfer tax on any firearm
classified as `any other weapon' shall be at the rate of $5'' and
requires that the transferor pay the transfer tax. This rule amends
Sec. 479.82 to reflect the new tax rate of $0 for transferring any NFA
firearms except machine guns and destructive devices.
Section 479.84 governs tax-paid transfers of NFA firearms using ATF
Form 5320.4, Application to Transfer and Register NFA Firearm (Tax-
Paid) (``Form 4''). Similarly to Sec. 479.82, this rule implements
conforming changes to Sec. 479.84(b)(1) to reflect the new tax rate of
$0 for transferring any NFA firearms except machine guns and
destructive devices, in accordance with the OBBBA. The existing section
mirrors the pre-OBBBA statutory language requiring a $200 tax for
transferring silencers, short-barreled rifles, short-barreled shotguns,
machine guns, and destructive devices, and a $5 tax for transferring
AOWs. All other requirements for lawfully transferring an NFA firearm
remain unchanged.
III. Statutory and Executive Order Review
A. Administrative Procedure Act
Under the Administrative Procedure Act (``APA''), 5 U.S.C.
553(b)(A), the usual requirements of prior notice and comment do not
apply to ``interpretive rules,'' meaning those that ``remind parties of
existing statutory or regulatory duties, or `merely track[ ]' ''
preexisting requirements and explain something the statute or
regulation already required.'' POET Biorefining, LLC v. EPA, 970 F.3d
392, 407 (D.C. Cir. 2020) (citation omitted); see also United States v.
Kriesel, 508 F.3d 941, 945 (9th Cir. 2007) (a regulation that
``mirror[s] the statute'' is a ``classic interpretive rule''). The
usual requirements of prior notice and comment also do not apply to
``rules of agency organization, procedure, or practice.'' 5 U.S.C.
553(b)(A). As described above, this final rule incorporates statutory
changes to the tax amount for NFA firearms into existing regulatory
provisions that previously aligned with statutory language. These
conforming updates to ATF regulations in 27 CFR part 479 ensure that
they are consistent with the statute and can be relied on by the
public. This final rule also makes minor agency procedural revisions to
allow ATF to use electronic approval stamps on NFA forms and minor
technical edits to conform with the Plain Writing Act. Even if these
revisions were not mere interpretive rules or rules of agency
organization, procedure, or practice, they would still be exempt from
the APA's notice and comment requirements because they are either
technical amendments of little public interest or else conform to
statutory requirements so closely that they do not constitute an
exercise of agency discretion. Accordingly, ATF has good cause to
conclude that notice and comment is unnecessary for this action. 5
U.S.C. 553(b)(B). ATF is issuing this as a final rule, without prior
public comment, effective 30 days after the date the Federal Register
publishes the rule.
B. Executive Orders 12866 and 13563
Executive Order 12866 (Regulatory Planning and Review) directs
agencies to assess the costs and benefits of available regulatory
alternatives and, if regulation is necessary, to select regulatory
approaches that maximize net benefits.
Executive Order 13563 (Improving Regulation and Regulatory Review)
emphasizes the importance of agencies quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting public
flexibility.
The Office of Management and Budget (``OMB'') has determined that
this rule is a ``significant regulatory action'' under section 3(f)(1)
of Executive Order 12866 because it has an economic impact of $100
million or more.
This final rule makes necessary conforming changes to 27 CFR part
479 by reflecting the statutory amendments that reduce the $200 tax
previously imposed for making and transferring all NFA firearms except
machine guns and destructive devices to a $0 tax. It also makes minor
agency procedural changes to allow ATF's tax approval stamp to be in
electronic form.
While an Initial Regulatory Impact Analysis may be required for
significant rules, ATF does not include such an analysis for this rule
because it is not subject to public notice and comment. However, ATF
nonetheless evaluated potential impacts on small businesses and
determined that the rule will have only a potentially positive indirect
impact on small businesses.
In addition, ATF has laid out the impacts from implementing the
OBBBA tax remittance change in ATF's OMB A-4 accounting statement here,
in Table 1. Table 1 also illustrates the range of future estimates in a
low, primary, and high range as ATF's Circular A-4 sensitivity
analysis. ATF then provides its normal regulatory cost-benefit analysis
below Table 1.
[[Page 25114]]
Table 1--OMB Circular A-4 Accounting Statement ($ millions) and Sensitivity Analysis
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Units
-----------------------------------
Category Primary Minimum Maximum Period
estimate estimate estimate Dollar Percent covered
year discount (years)
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Benefits
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Annualized monetized benefits........ $0 $0 $0 2025 7 10
0 0 0 2025 3 10
Annualized quantified benefits....... n/a n/a n/a 2025 7 10
n/a n/a n/a 2025 3 10
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Annualized non-monetized benefits.... n/a.
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Costs
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Annualized monetized costs........... 0 0 0 2025 7 10
0 0 0 2025 3 10
Annualized quantified costs.......... n/a n/a n/a 2025 7 10
n/a n/a n/a 2025 3 10
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Annualized non-monetized costs....... n/a.
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Transfers
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Federal annualized monetized......... 234.22 146.61 1,940.63 2025 7 10
238.68 148.53 2,410.51 2025 3 10
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From: federal government
To: individuals
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Other annualized monetized transfers. n/a n/a n/a 2025 7 10
n/a n/a n/a 2025 3 10
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Effects
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State, local, and/or tribal
governments......................... The rule will not impose an intergovernmental mandate, have significant
or unique effects on small governments, or have federalism or tribal
implications.
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Small businesses..................... For direct costs, this rule is deregulatory and provides savings to
individuals and businesses, including small businesses. However, the rule
may indirectly benefit businesses, including small businesses, by
increasing sales because the cost of purchasing covered firearms will not
include a $200 per-item tax.
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Wages................................ n/a.
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Growth............................... n/a.
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Distribution effects................. Transfer payments normally paid from individuals to the federal
government would no longer have to be paid.
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Alternatives......................... No-change alternative: $0 cost and $0 benefits. This was rejected because
it would place the regulation at odds with its generating statute. It is
also more stringent without any incremental benefit.
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Proposed alternative: Transfers $234.2 million annualized at 7 percent.
Cost $0. This alternative was chosen because it aligns the regulation
with its statute. Benefits exceed costs.
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Less-stringent alternative: Issuing guidance instead of a rule. This
alternative was not chosen because it would not change ATF regulations to
reflect changes in statute, creating misalignment.
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Net benefits
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Annualized monetized net benefits.... n/a n/a n/a .......... 7 10
n/a n/a n/a .......... 3 10
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1. Need Statement
This rule incorporates the statutory change to reduce the $200
making and transfer taxes on NFA firearms except machine guns and
destructive devices to a $0 tax. The $200 tax was paid with each
application to make (Form 1) or transfer (Form 4) NFA firearms (see
Table 2 below for estimated taxes paid to the Treasury). Due to the
statutory change, individuals making or transferring NFA firearms other
than machine guns and destructive devices now pay $0 with each of these
applications, so ATF is updating its regulations to conform with this
statutory change and prevent confusion.
2. Population, Benefits, and Transfers
ATF maintains a record of NFA applications to make or transfer an
NFA firearm. Over the last ten years, the annual number of NFA
applications has increased.\3\ Table 2 provides the number of
applications received annually during the ten years prior to drafting
this rule (2016 to 2025) for silencers, short-barreled rifles, short-
barreled shotguns, and AOWs. Because destructive devices and machine
guns are not included in the reduced NFA tax, they are not
[[Page 25115]]
impacted by this rule and are thus not included in this analysis. Table
2 provides the historical number of NFA applications that would have
been affected by the statutory tax reduction from $200 to $0.
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\3\ <a href="http://ATF.gov">ATF.gov</a>, National Firearms Act Division, <a href="https://www.atf.gov/firearms/national-firearms-act-division">https://www.atf.gov/firearms/national-firearms-act-division</a>.
Table 2--Historical Number of Applicable Forms 1 and 4 Applications
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Estimated NFA
Year Applications taxes assessed *
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2016............................ 303,859 $60,508,745
2017............................ 119,850 23,798,985
2018............................ 176,819 35,363,800
2019............................ 199,861 39,837,650
2020............................ 291,512 58,302,400
2021............................ 372,015 74,228,670
2022............................ 481,917 96,383,400
2023............................ 460,022 91,864,585
2024............................ 832,264 166,452,800
2025............................ 810,099 161,667,240
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* Note: NFA taxes are estimated because this total does not account for
any refunds or interest that might have occurred in specific cases
after the taxes were paid.
Based on this data, ATF forecasts future applications for years
2026 to 2035.
Table 3 provides the anticipated increase in Forms 1 and 4
applications arising from the statutory change permitting $0-tax
transfers over the next ten years.\4\
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\4\ ATF notes that because AOWs were assessed a $5 tax instead
of a $200 tax, the future projected taxation is not a calculation
directly derived from multiplying the number of NFA applications by
the $200 tax. Therefore, estimated projections do not directly
reflect the projected number of NFA applications.
Table 3--Projected Number of Zero-Tax NFA Applications, Baseline Scenario *
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Future years Low estimate Main estimate High estimate
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1......................................................... 635,836 887,793 1,139,749
2......................................................... 644,488 959,585 1,274,682
3......................................................... 663,702 1,031,377 1,399,053
4......................................................... 689,430 1,103,170 1,516,909
5......................................................... 719,692 1,174,962 1,630,232
6......................................................... 753,340 1,246,754 1,740,168
7......................................................... 789,642 1,318,546 1,847,450
8......................................................... 828,095 1,390,338 1,952,582
9......................................................... 868,336 1,462,131 2,055,925
10........................................................ 910,093 1,533,923 2,157,752
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* Assuming the annual rate of increase remains constant. It is possible the rate will increase even more once
the tax is zero, but ATF has no data from which to predict by how much.
This rule reduces the $200 taxes on most NFA firearms (except
machine guns and destructive devices) to $0 tax. Changes in tax
collection are not deregulatory savings; instead, they are a transfer
from the government to manufacturers and consumers. Table 4 provides
the estimated transfers from the government to consumers and
manufacturers.
Table 4--Projected Government Transfers
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Projected Undiscounted
Year affected NFA $200 tax 3-Percent 7-Percent
applications savings discount rate discount rate
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1....................................... 887,793 $177,558,585 $172,386,976 $165,942,603
2....................................... 959,585 191,917,026 180,900,204 167,627,763
3....................................... 1,031,377 206,275,467 188,771,273 168,382,226
4....................................... 1,103,170 220,633,908 196,030,369 168,320,552
5....................................... 1,174,962 234,992,349 202,706,464 167,546,297
6....................................... 1,246,754 249,350,789 208,827,360 166,152,959
7....................................... 1,318,546 263,709,230 214,419,737 164,224,855
8....................................... 1,390,338 278,067,671 219,509,187 161,837,916
9....................................... 1,462,131 292,426,112 224,120,265 159,060,429
10...................................... 1,533,923 306,784,553 228,276,519 155,953,710
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Total............................... 12,108,578 2,421,715,690 2,035,948,354 1,645,049,310
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[[Page 25116]]
Annualized.......................... ................ ................ 238,675,257 234,218,013
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* The ``Undiscounted'' column represents totals from the underlying costs. Consistent with guidance provided by
OMB in Circular A-4, the ``3-percent discount rate'' and ``7-percent discount rate'' columns result from
applying an economic formula to the number in each row of this ``Undiscounted'' column to show how these
future costs over time would be valued today; they do not contain totals from other tables.
ATF anticipates this rulemaking will have a total, ten-year
undiscounted transfer of $2.4 billion, or annualized transfers of
$238.7 million at a 3 percent discount rate and $234.2 million at a 7
percent discount rate.
3. Regulatory Alternatives
Alternative 1. Maintaining the Status Quo (No Action Alternative)
ATF considered not updating the regulations to reflect tax changes
under the statute. There would be no costs or savings attributed to
this alternative as it would not make any changes. However, it would
create confusion since the regulatory requirement and the statutory
requirement would be inconsistent. There would be a non-monetized
benefit to public safety from leaving the regulation as is. However,
ATF rejected this alternative because the tax change is statutory and
any such increased risks to public safety have therefore already
occurred (even if the regulation remains the same).
Alternative 2. Rulemaking
This alternative reduces the existing regulatory requirement to pay
$200 taxes on all NFA firearms except machine guns and destructive
devices to match the statutory change to $0 tax. This conforms ATF
regulations to recent statutory changes reducing the tax amount for
these firearms and provides deregulatory savings to individuals wishing
to purchase NFA weapons, due to the reduced tax rate of $0 per firearm.
ATF accepted this alternative because it brings the regulations into
compliance with the statute and provides substantial public benefit
without any risk to public safety.
Alternative 3. Issuing Guidance
While this alternative would not impose any additional costs, the
current tax rate requirements are in a regulation. This alternative
does not have the force and effect of a regulation, and issuing
guidance would not align the regulation with the statute. Giving
guidance that does not align with the regulation would create more
confusion and potential scope issues. Therefore, ATF rejected this
alternative.
C. Executive Order 14192
Executive Order 14192 (Unleashing Prosperity through Deregulation)
requires an agency, unless prohibited by law, to identify at least ten
existing regulations to be repealed or revised when the agency publicly
proposes for notice and comment or otherwise promulgates a new
regulation that qualifies as an Executive Order 14192 regulatory action
(defined in OMB Memorandum M-25-20 as a final significant regulatory
action under section 3(f) of Executive Order 12866 that imposes total
costs greater than zero). In furtherance of this requirement, section
3(c) of Executive Order 14192 requires that any new incremental costs
associated with such new regulations must, to the extent permitted by
law, also be offset by eliminating existing costs associated with at
least ten prior regulations. However, this rule is not an Executive
Order 14192 regulatory action and provides transfers from the
government back to the individual or entity.
D. Executive Order 14294
Executive Order 14294 (Fighting Overcriminalization in Federal
Regulations) requires agencies promulgating regulations with criminal
regulatory offenses potentially subject to criminal enforcement to
explicitly describe the conduct subject to criminal enforcement, the
authorizing statutes, and the mens rea standard applicable to each
element of those offenses. This rule does not create a criminal
regulatory offense and is thus exempt from Executive Order 14294
requirements.
E. Executive Order 13132
This final rule does not have substantial direct effects on the
states, the relationship between the federal government and the states,
or the distribution of power and responsibilities among the various
levels of government. Therefore, in accordance with section 6 of
Executive Order 13132 (Federalism), the Director has determined that
this final rule does not impose substantial direct compliance costs on
State and local governments, preempt state law, or meaningfully
implicate federalism. It thus does not warrant preparing a federalism
summary impact statement.
F. Executive Order 12988
This final rule meets the applicable standards set forth in
sections 3(a) and 3(b)(2) of Executive Order 12988 (Civil Justice
Reform).
G. Regulatory Flexibility Act
Under the Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612,
agencies are required to conduct a regulatory flexibility analysis of
any final rule subject to notice-and-comment rulemaking requirements
unless the agency head certifies, including a statement of the factual
basis, that the final rule will not have a significant economic impact
on a substantial number of small entities. Small entities include
certain small businesses, small not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
However, in accordance with the RFA, 5 U.S.C. 603, 604, and 605(b),
an agency is not required to conduct a regulatory flexibility analysis
in a final rule for which it was not required to publish a general
notice of proposed rulemaking. This rule will not have a negative
impact on small businesses. Reducing the $200 tax to $0 may have
positive net benefits for small businesses with respect to increased
sales and revenue.
H. Unfunded Mandates Reform Act of 1995
This final rule will not result in expenditure by state, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more in any one year (as adjusted for inflation), and it
will not significantly or uniquely affect small governments. Therefore,
ATF has determined that no actions are necessary under the provisions
of the Unfunded Mandates Reform Act of 1995.
I. Paperwork Reduction Act of 1995
Under the Paperwork Reduction Act of 1995 (``PRA''), 44 U.S.C.
3501-3521,
[[Page 25117]]
agencies are required to submit to OMB, for review and approval, any
information collection requirements a rule creates or any impacts it
has on existing information collections. An information collection
includes any reporting, record-keeping, monitoring, posting, labeling,
or other similar actions an agency requires of the public. See 5 CFR
1320.3(c). This final rule does not create any new information
collection requirements, but it does impact two existing ones covered
by the PRA.
The two impacted information collections are: (1) OMB control
number 1140-0011: Application to Make and Register NFA Firearm, which
includes ATF Form 53201.1 (``Form 1''); and (2) OMB control number
1140-0014: Application to Transfer and Register NFA Firearm (Tax-Paid),
which includes ATF Form 5320.4 (``Form 4''). Both forms contained in
these information collections have had a non-substantive change made to
the forms to add a $0 remittance option, in accordance with the
statute's requirements. In addition, because this rule permits persons
to buy and make some kinds of NFA firearms without paying the
traditional $200 tax, ATF anticipates that the number of respondents
submitting Forms 1 and 4 applications may increase, which would result
in a higher total time burden arising from more applications. This
would be the only change arising from this rule. Any increase in
respondents and resulting increase to the time burden will be reflected
in the collections' next renewals.
Impacted ICR 1
Title: Application to Make and Register NFA Firearm.
OMB control number: 1140-0011.
Form number: ATF Form 5320.1 (``Form 1'').
Summary of the information collection: Any person other than a
qualified manufacturer who wishes to make and register an NFA firearm
must submit a written application to ATF on a form prescribed by ATF.
26 U.S.C. 5822. They must also identify the firearm they are making and
themselves as the maker. Finally, individuals must include their
fingerprints and a photograph with the application. In Sec. 479.62,
ATF prescribed ATF Form 5320.1 (``Form 1''), Application to Make and
Register NFA Firearm, for these required purposes.
Need for information and proposed use: ATF's NFA Division uses the
information on this form to determine whether the applicant may legally
make and register the firearm under federal, state, tribal, and local
law. Section 5822 provides that ATF cannot approve an application if
making or possessing the firearm would place the person making the
firearm in violation of law. The form asks individual applicants to
respond, under penalties of perjury, to questions to determine whether
they are prohibited by federal law from possessing firearms. For a
trust or legal entity, which cannot answer these questions on Form 1
because it is not an individual, each responsible person for that trust
or legal entity instead provides this information when it submits Form
5320.23, NFA Responsible Person Questionnaire (covered by OMB control
number 1140-0107).
Description of the respondents affected by this proposed rule:
Individuals or households.
Number of respondents: 148,975 annually.
Frequency of response: Once.
Response time estimate: 12 minutes (overall reduction from 30
minutes, due to conversion to eForm and other technological changes).
Burden of response: 29,795 hours total for all respondents.
Impacted ICR 2
Title: Application to Transfer and Register NFA Firearm (Tax-Paid).
OMB control number: 1140-0014.
Form number: ATF Form 5320.4 (``Form 4'').
Summary of the information collection: Persons with an NFA firearm
must apply to ATF for approval to transfer and register the firearm as
required by the NFA. 26 U.S.C. 5812. ATF Form 5320.4 (``Form 4''), is
the prescribed means for submitting this application, facilitates and
records the firearms transfer, and also serves as proof of registration
once approved.
Need for information and proposed use: ATF's NFA Division uses the
information on this form to determine whether the applicant may legally
make and register the firearm under federal, state, tribal, and local
law. The form also identifies the transferor, transferee, and
firearm(s). 26 U.S.C. 5812 provides that ATF cannot approve an
application if receiving or possessing the firearm would place the
person receiving the firearm in violation of law. The form asks
individual transferees to respond, under penalties of perjury, to
questions to determine whether they are prohibited by federal law from
possessing firearms. For a trust or legal entity, which cannot answer
these questions on Form 4 because it is not an individual, each
responsible person for that trust or legal entity instead provides this
information when it submits Form 5320.23, NFA Responsible Person
Questionnaire (covered by OMB control number 1140-0107).
Description of the respondents affected by this proposed rule:
Individuals or households.
Number of respondents: 546,424 annually.
Frequency of response: Once.
Response time estimate: 12 minutes per (overall reduction from 30
minutes, due to conversion to eForm and other technological changes).
Burden of response: 109,285 hours total for all respondents.
J. Congressional Review Act
Pursuant to the Congressional Review Act, 5 U.S.C. 801 et seq., ATF
has determined that this final rule meets the criteria in 5 U.S.C.
804(2) to constitute a major rule. This final rule is a major rule
because it will result in an annual effect on the economy of $100
million or more. However, this rule will not cause an increase in
prices, nor will it have an adverse effect on the economy, on
competition, employment, investment, productivity, innovation, or US
enterprises, because this rule provides transfers from the government
back to the individual or entity. Pursuant to 5 U.S.C. 808(2), this
rule is not subject to the CRA's requirement for a 60-day delayed
effective date because, as discussed above, ATF has found good cause to
conclude that notice and comment are unnecessary for this rule.
List of Subjects in 27 CFR Part 479
Administrative practice and procedure, Arms and munitions, Exports,
Imports, Military personnel, Penalties, Reporting and recordkeeping
requirements, Seizures and forfeitures, Taxes, Transportation.
For the reasons discussed in the preamble, ATF amends 27 CFR part
479 as follows:
PART 479--MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER
FIREARMS
0
1. Revise the authority citation for part 479 to read as follows:
Authority: 26 U.S.C. 5801-5822; 26 U.S.C. 7801; 26 U.S.C. 7805.
0
2. Revise Sec. 479.61 to read as follows:
Sec. 479.61 Making tax rate.
(a) Except as provided in this subpart, the Director must levy and
collect, and a person, upon making a firearm, must pay, a tax at the
rate of--
(1) $200 for each firearm made, in the case of a machine gun or a
destructive device; and
[[Page 25118]]
(2) $0 for any firearm made that is not described in paragraph
(a)(1) of this section.
(b) The Director must indicate that the maker paid the tax by
adding a stamp of the proper denomination, bearing the words ``National
Firearms Act.'' The Director maintains the stamps and must affix or
apply one to each approved application form, as provided in this
subpart. The stamps may be adhesive, in electronic form, or in another
form designated by the Director.
0
3. Amend Sec. 479.62 by revising the section heading and paragraph
(b)(1) to read as follows:
Sec. 479.62 Applying to make.
* * * * *
(b) * * *
(1) Type of application, i.e., tax-paid or tax-exempt. If making
the firearm is taxable, the applicant must remit $200 with the
application for a machine gun or destructive device, or $0 for all
other firearms, in accordance with the instructions on the form;
* * * * *
0
4. Revise Sec. 479.81 to read as follows:
Sec. 479.81 Tax scope.
Except as otherwise provided in this part, each NFA firearm
transfer in the United States is subject to a transfer tax. The
Director indicates that the transferor has paid the tax and ATF has
approved the application by adding a stamp of the proper denomination,
bearing the words ``National Firearms Act.'' The Director maintains the
stamps and must affix or apply one to each approved application form,
as provided in this subpart. The stamps may be adhesive, in electronic
form, or in another form designated by the Director.
0
5. Revise Sec. 479.82 to read as follows:
Sec. 479.82 Transfer tax rate.
(a) The transfer tax imposed with respect to NFA firearms
transferred within the United States is at the rate of--
(1) $200 for each firearm transferred, in the case of a machine gun
or a destructive device; and
(2) $0 for any firearm transferred that is not described in
paragraph (a)(1) of this section.
(b) The transferor must pay the transfer tax.
0
6. Amend Sec. 479.84 by revising its heading and paragraph (b)(1) to
read as follows:
Sec. 479.84 Applying to transfer.
* * * * *
(b) * * *
(1) Type of firearm being transferred. The applicant must remit
$200 with the application for a machine gun or destructive device, or
$0 for all other firearms, in accordance with the instructions on the
form;
* * * * *
Robert Cekada,
Director.
[FR Doc. 2026-09155 Filed 5-7-26; 8:45 am]
BILLING CODE 4410-FY-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.