26 USC Chapter 53 Sec 5801 Imposition of tax

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[Laws in effect as of January 7, 2003]

[Document not affected by Public Laws enacted between

January 7, 2003 and February 12, 2003]

[CITE: 26USC5801]

TITLE 26--INTERNAL REVENUE CODE

Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes

CHAPTER 53--MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER

FIREARMS

Subchapter A--Taxes

PART I--SPECIAL (OCCUPATIONAL) TAXES

Sec. 5801. Imposition of tax

(a) General rule

On 1st engaging in business and thereafter on or before July 1 of

each year, every importer, manufacturer, and dealer in firearms shall

pay a special (occupational) tax for each place of business at the

following rates:

(1) Importers and manufacturers: $1,000 a year or fraction

thereof.

(2) Dealers: $500 a year or fraction thereof.

(b) Reduced rates of tax for small importers and manufacturers

(1) In general

Paragraph (1) of subsection (a) shall be applied by substituting

``$500'' for ``$1,000'' with respect to any taxpayer the gross

receipts of which (for the most recent taxable year ending before

the 1st day of the taxable period to which the tax imposed by

subsection (a) relates) are less than $500,000.

(2) Controlled group rules

All persons treated as 1 taxpayer under section 5061(e)(3) shall

be treated as 1 taxpayer for purposes of paragraph (1).

(3) Certain rules to apply

For purposes of paragraph (1), rules similar to the rules of

subparagraphs (B) and (C) of section 448(c)(3) shall apply.

(Added Pub. L. 90-618, title II, Sec. 201, Oct. 22, 1968, 82 Stat. 1227;

amended Pub. L. 100-203, title X, Sec. 10512(g)(1), Dec. 22, 1987, 101

Stat. 1330-449.)

Prior Provisions

A prior section 5801, acts Aug. 16, 1954, ch. 736, 68A Stat. 721;

Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 203(a), 72 Stat. 1427;

June 1, 1960, Pub. L. 86-478, Sec. 1, 74 Stat. 149, consisted of

provisions similar to those comprising this section, prior to the

general revision of this chapter by Pub. L. 90-618.

Amendments

1987--Pub. L. 100-203 substituted ``Imposition of tax'' for ``Tax''

in section catchline and amended text generally. Prior to amendment,

text read as follows: ``On first engaging in business and thereafter on

or before the first day of July of each year, every importer,

manufacturer, and dealer in firearms shall pay a special (occupational)

tax for each place of business at the following rates:

``(1) Importers.--$500 a year or fraction thereof;

``(2) Manufacturers.--$500 a year or fraction thereof;

``(3) Dealers.--$200 a year or fraction thereof.

Except an importer, manufacturer, or dealer who imports, manufactures,

or deals in only weapons classified as `any other weapon' under section

5845(e), shall pay a special (occupational) tax for each place of

business at the following rates: Importers, $25 a year or fraction

thereof; manufacturers, $25 a year or fraction thereof; dealers, $10 a

year or fraction thereof.''

Effective Date of 1987 Amendment

Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section

10512(h) of Pub. L. 100-203, set out as an Effective Date note under

section 5081 of this title.

Effective Date

Section 207 of Pub. L. 90-618, as amended by Pub. L. 99-514, Sec. 2,

Oct. 22, 1986, 100 Stat. 2095, provided that:

``(a) Section 201 of this title [enacting this chapter] shall take

effect on the first day of the first month following the month in which

it is enacted [October 1968].

``(b) Notwithstanding the provisions of subsection (a) or any other

provision of law, any person possessing a firearm as defined in section

5845(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as

amended by this title) which is not registered to him in the National

Firearms Registration and Transfer Record shall register each firearm so

possessed with the Secretary of the Treasury or his delegate in such

form and manner as the Secretary or his delegate may require within the

thirty days immediately following the effective date of section 201 of

this Act [see subsec. (a) of this section]. Such registrations shall

become a part of the National Firearms Registration and Transfer Record

required to be maintained by section 5841 of the Internal Revenue Code

of 1986 (as amended by this title). No information or evidence required

to be submitted or retained by a natural person to register a firearm

under this section shall be used, directly or indirectly, as evidence

against such person in any criminal proceeding with respect to a prior

or concurrent violation of law.

``(c) The amendments made by sections 202 through 206 of this title

[amending sections 6806 and 7273 of this title, repealing sections 5692

and 6107 of this title, and enacting provisions set out as a note under

this section] shall take effect on the date of enactment [Oct. 22,

1968].

``(d) The Secretary of the Treasury, after publication in the

Federal Register of his intention to do so, is authorized to establish

such period of amnesty, not to exceed ninety days in the case of any

single period, and immunity from liability during any such period, as

the Secretary determines will contribute to the purposes of this title

[adding this chapter, and sections 6806 and 7273 of this title,

repealing sections 5692 and 6107 of this title, and enacting provisions

set out as notes under this section].''

Section Referred to in Other Sections

This section is referred to in sections 5846, 5851, 5861 of this

title.

Sec. 5802. Registration of importers, manufacturers, and dealers

On first engaging in business and thereafter on or before the first

day of July of each year, each importer, manufacturer, and dealer in

firearms shall register with the Secretary in each internal revenue

district in which such business is to be carried on, his name, including

any trade name, and the address of each location in the district where

he will conduct such business. An individual required to register under

this section shall include a photograph and fingerprints of the

individual with the initial application. Where there is a change during

the taxable year in the location of, or the trade name used in, such

business, the importer, manufacturer, or dealer shall file an

application with the Secretary to amend his registration. Firearms

operations of an importer, manufacturer, or dealer may not be commenced

at the new location or under a new trade name prior to approval by the

Secretary of the application.

(Added Pub. L. 90-618, title II, Sec. 201, Oct. 22, 1968, 82 Stat. 1227;

amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1834; Pub. L. 103-322, title XI, Sec. 110301(b), Sept. 13, 1994,

108 Stat. 2012.)

Prior Provisions

A prior section 5802, act Aug. 16, 1954, ch. 736, 68A Stat. 721,

consisted of provisions similar to those comprising this section, prior

to the general revision of this chapter by Pub. L. 90-618.

A prior section 5803, act Aug. 16, 1954, ch. 736, 68A Stat. 722,

made a cross reference to section 5812 exempting certain transfers,

prior to the general revision of this chapter by Pub. L. 90-618.

Amendments

1994--Pub. L. 103-322 inserted after first sentence ``An individual

required to register under this section shall include a photograph and

fingerprints of the individual with the initial application.''

1976--Pub. L. 94-455 struck out ``or his delegate'' after

``Secretary'' wherever appearing.

Section Referred to in Other Sections

This section is referred to in sections 5861, 7012 of this title.

PART II--TAX ON TRANSFERRING FIREARMS

Sec. 5811. Transfer tax

(a) Rate

There shall be levied, collected, and paid on firearms transferred a

tax at the rate of $200 for each firearm transferred, except, the

transfer tax on any firearm classified as any other weapon under section

5845(e) shall be at the rate of $5 for each such firearm transferred.

(b) By whom paid

The tax imposed by subsection (a) of this section shall be paid by

the transferor.

(c) Payment

The tax imposed by subsection (a) of this section shall be payable

by the appropriate stamps prescribed for payment by the Secretary.

(Added Pub. L. 90-618, title II, Sec. 201, Oct. 22, 1968, 82 Stat. 1228;

amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1834.)

Prior Provisions

A prior section 5811, acts Aug. 16, 1954, ch. 736, 68A Stat. 722;

Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 203(b), 72 Stat. 1427;

June 1, 1960, Pub. L. 86-478, Sec. 2, 74 Stat. 149, consisted of

provisions similar to those comprising this section, prior to the

general revision of this chapter by Pub. L. 90-618.

Amendments

1976--Subsec. (c). Pub. L. 94-455 struck out ``or his delegate''

after ``Secretary''.

Effective Date

Section effective on first day of first month following October

1968, see section 207 of Pub. L. 90-618, set out as a note under section

5801 of this title.

Section Referred to in Other Sections

This section is referred to in sections 4182, 5846, 5852 to 5854 of

this title.

Sec. 5812. Transfers

(a) Application

A firearm shall not be transferred unless (1) the transferor of the

firearm has filed with the Secretary a written application, in

duplicate, for the transfer and registration of the firearm to the

transferee on the application form prescribed by the Secretary; (2) any

tax payable on the transfer is paid as evidenced by the proper stamp

affixed to the original application form; (3) the transferee is

identified in the application form in such manner as the Secretary may

by regulations prescribe, except that, if such person is an individual,

the identification must include his fingerprints and his photograph; (4)

the transferor of the firearm is identified in the application form in

such manner as the Secretary may by regulations prescribe; (5) the

firearm is identified in the application form in such manner as the

Secretary may by regulations prescribe; and (6) the application form

shows that the Secretary has approved the transfer and the registration

of the firearm to the transferee. Applications shall be denied if the

transfer, receipt, or possession of the firearm would place the

transferee in violation of law.

(b) Transfer of possession

The transferee of a firearm shall not take possession of the firearm

unless the Secretary has approved the transfer and registration of the

firearm to the transferee as required by subsection (a) of this section.

(Added Pub. L. 90-618, title II, Sec. 201, Oct. 22, 1968, 82 Stat. 1228;

amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1834.)

Prior Provisions

A prior section 5812, act Aug. 16, 1954, ch. 736, 68A Stat. 722,

consisted of provisions similar to those comprising this section, prior

to the general revision of this chapter by Pub. L. 90-618.

A prior section 5813, act Aug. 16, 1954, ch. 736, 68A Stat. 723,

related to the affixing of the required stamps to the order form for the

firearm, prior to the general revision of this chapter by Pub. L. 90-

618.

A prior section 5814, acts Aug. 16, 1954, ch. 736, 68A Stat. 723;

Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 203(c), 72 Stat. 1427,

related to the order forms required for the transfer of a firearm, prior

to the general revision of this chapter by Pub. L. 90-618.

Amendments

1976--Subsecs. (a), (b). Pub. L. 94-455 struck out ``or his

delegate'' after ``Secretary'' wherever appearing.

Section Referred to in Other Sections

This section is referred to in title 18 section 922.

PART III--TAX ON MAKING FIREARMS

Sec. 5821. Making tax

(a) Rate

There shall be levied, collected, and paid upon the making of a

firearm a tax at the rate of $200 for each firearm made.

(b) By whom paid

The tax imposed by subsection (a) of this section shall be paid by

the person making the firearm.

(c) Payment

The tax imposed by subsection (a) of this section shall be payable

by the stamp prescribed for payment by the Secretary.

(Added Pub. L. 90-618, title II, Sec. 201, Oct. 22, 1968, 82 Stat. 1228;

amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1834.)

Prior Provisions

A prior section 5821, acts Aug. 16, 1954, ch. 736, 68A Stat. 724;

Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 203(d), 72 Stat. 1427,

consisted of provisions similar to those comprising this section, prior

to the general revision of this chapter by Pub. L. 90-618.

Amendments

1976--Subsec. (c). Pub. L. 94-455 struck out ``or his delegate''

after ``Secretary''.

Effective Date

Section effective on first day of first month following October

1968, see section 207 of Pub. L. 90-618, set out as a note under section

5801 of this title.

Section Referred to in Other Sections

This section is referred to in sections 5846, 5852, 5853 of this

title.

Sec. 5822. Making

No person shall make a firearm unless he has (a) filed with the

Secretary a written application, in duplicate, to make and register the

firearm on the form prescribed by the Secretary; (b) paid any tax

payable on the making and such payment is evidenced by the proper stamp

affixed to the original application form; (c) identified the firearm to

be made in the application form in such manner as the Secretary may by

regulations prescribe; (d) identified himself in the application form in

such manner as the Secretary may by regulations prescribe, except that,

if such person is an individual, the identification must include his

fingerprints and his photograph; and (e) obtained the approval of the

Secretary to make and register the firearm and the application form

shows such approval. Applications shall be denied if the making or

possession of the firearm would place the person making the firearm in

violation of law.

(Added Pub. L. 90-618, title II, Sec. 201, Oct. 22, 1968, 82 Stat. 1228;

amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1834.)

Prior Provisions

A prior section 5831, act Aug. 16, 1954, ch. 736, 68A Stat. 724,

made a cross reference to section 4181 of this title relating to an

excise tax on pistols, revolvers, and firearms, prior to the general

revision of this chapter by Pub. L. 90-618, title II, Sec. 201, Oct. 22,

1968, 82 Stat. 1227.

Amendments

1976--Pub. L. 94-455 struck out ``or his delegate'' after

``Secretary''.