Justification for OMB 1140-0015 (ATF Form 5 (5320.5) Final

DEPARTMENT OF JUSTICE
BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES
Information Collection Request
Supporting Statement
OMB 1140-0015
Application for Tax Exempt Transfer and Registration of Firearm - ATF Form 5
(5320.5)

A.

JUSTIFICATION
1.

The Application for Tax Exempt Transfer and Registration of Firearm - ATF
Form 5 (5320.5) is required for a person with a registered National Firearms Act
(NFA)(Title 26, United States Code, Chapter 53) firearm to apply for, and
receive permission for the transfer and registration of an NFA firearm. The
statutory requirements are implemented in Title 27, Code of Federal
Regulations, Part 479.
Under the provisions of 26 U.S.C. § 5812, an NFA firearm shall not be
transferred until the transferor has applied for and received approval from the
Attorney General of the United States (delegated to ATF) and paid the
applicable transfer tax. The transfer of an NFA firearm is subject to a tax of
$200 or $5 (for a firearm classified as an “any other weapon”) as established by
§ 5811 unless exempted. Exemptions from payment of the transfer tax are
provided by §§ 5852 and 5853. See §§ 479.81 through 479.86 and §§ 479.89
through 479.91.
Exemptions from the payment of the transfer tax are provided for the transfer of
an NFA firearm to the United States (§§ 5852(a) and 479.89); to a State or local
agency (§§ 5853(a) and 479.90); and of an unserviceable firearm (§§ 5852(e)
and 479.91). In addition, ATF uses the Form 5 to effect a transfer resulting from
operation of law, for example, a firearm in an estate being transferred to a
beneficiary (as now provided by § 479.90a), or a firearm being transferred as a
result of a bankruptcy. ATF also uses the Form 5 for the temporary conveyance
of a firearm for repair and its subsequent return. The claim to entitlement for
each specific exemption is contained on the Form 5 application.

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ATF Form 5 (5320.5)
1140-0015
Section 5812 also requires that the application form identify the transferee in
such manner as the Attorney General may by regulations prescribe, except
that if the transferee is an individual, his fingerprints and photographs must
be included in the application. Similarly, the transferor and firearm must
also be identified in such manner as the Attorney General may by
regulations prescribe.
ATF extended the requirements for fingerprints and photographs to other
transferees. Prior to the rulemaking, if the transferee was a trust or legal
entity, such as an LLC or corporation, fingerprints and photographs were not
required. The rulemaking defined responsible persons in regard to trusts and
legal entities, and requires that any responsible person must submit
fingerprints and photographs.
The regulations had required an individual transferee to obtain a certification
from their local chief law enforcement officer, confirming that the transfer
and possession of the firearm was not prohibited by State or local law, and
that the official had no knowledge that the transferee would use the firearm
for any unlawful reason. This rulemaking rescinded the requirement for the
certification and replaced it with a notification to the local chief law
enforcement officer of the proposed transfer of the firearm. The notification
is required for all transferees and responsible persons.
ATF has identified that the collection of Responsible Persons Social Security
Number, Date of Birth, Race, and UPIN (if applicable) would assist in
limiting delays in the processing of NICS background checks. While this
information is not required, it would prove beneficial.
Form Changes. ATF requests approval to make the following changes to
ATF Form 5 (5320.5):
•
•
•

Item 2: Remove "Legal Entity" and add "Corporation" and
"Legal Entity" as separate choices.
Item 2b: Add "/Parrish" to County
Item 3d: Remove "optional"

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ATF Form 5 (5320.5)
1140-0015

• Item 5: Copy language directly from the Item 5 of the ATF Form 1. Add a
separate entry box for both FFL and FEL license/permit numbers.
• Item 12: Reduce spacing to save room for additional items below
• Item 16: Add SSN, DOB, and Race
• New Item 17a: Add State of Birth and Country of Birth
• Add UPIN to be Item 19
• Definitions/Instructions: 1e: Responsible Person: Break definition into
section A. and B.
• Definitions/Instructions: 2d(2): Change numbering to "20 & 21".
• Definitions/Instructions 2d(3): Change numbering to include "18 or 19"
add "See 2.
d.5. for RP Requirements".
• Add new Definitions/Instructions: 2.h: Social Security Number
• Change all references from "NFA Branch" to "NFA Division"
• Item 2a: Update "Legal Entity" to "Other Legal Entity"
• Items 5, 22 and Definitions/Instructions 2i and 2l: Change all references
from "Applicant" to "Transferee"
• Item 4g: Obscure "Serial Number" on CLEO Copy
• Item 16: Obscure "Social Security Number" on CLEO Copy and ATF
Copy 2
• Items 16 and 20: Add "(See Instruction 2h)"
• Increase Font Size of "Important Information for Currently Registered
Firearms" Section
• Definitions/Instructions: 2i: Signatures: Add the statement: "Exceptions:
In the case of eforms or where a variance has been granted a digital
signature may be used."
• Item 4i: Update statement to read as follows: "Has the Firearm been
rendered unserviceable as defined in Definition 1m? If "Yes", describe the
method by which the firearm has been rendered unserviceable. Use
additional sheets."
• Item 15: Photo block: Remove "Business"
• Item 3c: Obscure "Transferor’s Telephone" on CLEO Copy
• Item 3d: Obscure "E-mail address" on CLEO Copy

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ATF Form 5 (5320.5)
1140-0015

2.

The information on this form is used by NFA Division personnel to determine
the legality of the application under Federal, State and local law. The form
identifies the transferor, transferee and firearm. Section 5812 provides that an
application shall not be approved if the receipt or possession would place the
person receiving the firearm in violation of law. Section 5811 imposes a tax
upon the transfer of an NFA firearm. The form is used by applicants to
qualify their claim for exemption from the payment of transfer tax as provided
by §§ 5852 and 5853.
An individual transferee is asked to respond, under penalties of perjury, to
questions to determine whether he or she is prohibited by Federal law from
possessing firearms. For a trust or legal entity, each responsible person will
provide this information via the filing of National Firearms Act (NFA)
Responsible Person Questionnaire, ATF Form 5320.23.
The requirement for the submission of fingerprints for both individual
transferees and responsible persons, allows ATF to determine based on
criminal history checks, whether an individual transferee or responsible person
would be prohibited by Federal law from possessing a firearm. The law
enforcement notification required of the transferee and any responsible person
(via Form 5320.23) allows local law enforcement authorities to provide any
information that would indicate whether the transferee or any responsible
person is prohibited by Federal law from possessing a firearm. The application
is submitted in duplicate. The approval of the application effectuates the
registration of the firearm to the transferee. Both copies of the application are
noted to reflect the approval – one copy is returned to the applicant for
transmission to the transferee as proof of registration ,and the other is retained
by ATF as part of the National Firearms Registration and Transfer Record.
The information is also used to verify any subsequent transfer and registration
of the firearm. In addition, registration information is used to determine the
non-registration of a firearm, a violation as specified in § 5861.

3.

The form is currently available for electronic filing on the ATF website at
www.atfonline.gov.

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ATF Form 5 (5320.5)
1140-0015

4.

ATF uses a uniform subject classification system to identify duplication and
to ensure that any similar information already available cannot be used or
modified for use for the purpose of this information collection.

5.

The information on this form is unique to the person supplying it and would
have minimal or no impact on small businesses or other small entities.

6.

The consequences of not conducting this information collection could result
in firearms being transferred to persons whose possession would be in
violation of law. The information is used to ensure the legal transfer and
possession of a firearm and to effectuate the registration of the firearm to the
transferee in the National Firearms Registration and Transfer Record. The
information collection also ensures the exemption from the transfer tax
liability.

7.

There are no special circumstances associated with this collection and the
collection is conducted in a manner consistent with the requirement in 5 CFR
1320.6.

8.

All comments received during both the 60-day and the 30-day Federal
Register Notice period received a response, and/or were incorporated within
ATF Form 5 (5320.5).

9.

No payment or gift was provided in association with this collection.

10.

The information from this application is classified as “tax information” or
“tax return information” and any release is severely restricted under the Tax
Reform Act (26 U.S.C. § 6103) and may only be disclosed to Federal
authorities for purposes of prosecution for violation of the National Firearms
Act. The information is kept in a secured location. Confidentiality is not
assured.

11.

Questions of a sensitive nature are included on the form. These relate to the
qualifications of the transferee, such as whether the transferee has been
convicted of any crime, is a fugitive from justice, is a drug user, is an illegal

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ATF Form 5 (5320.5)
1140-0015

alien, etc. This information is needed to determine whether the transferee is
prohibited by Federal law from possessing firearms.
12.

There are 10,591 respondents who will respond one (1) time to this
Information Collection (IC). Of these, 9,892 Government/Federal firearm
licensee respondents will take 20 minutes per response (3,297 hours); 211
trust and legal entity responders will take 260 minutes per response (914
hours); and 488 individual respondents. It takes on average .5052 hours to
complete the form. Therefore, the total annual IC burden is 5,350 hours.

13.

The total estimated cost burden for this IC is $33,149.83 or $33,150, which
is calculated as follows: $3.13(average cost per respondent to prepare and
mail packet with responses) * 10,591 (# total respondents).:

14.

The estimated annual Federal Government cost of $24,950.31 is as follows:
• Printing Forms 5: $3,283.21
(10,591 forms x $.31 per form)
• Processing fingerprints: $11,602.50
($12.75 x 910 individuals and responsible persons)
• Conducting and reviewing background checks of individual and
responsible person respondents: $10,064.60
($11.06 (15 minutes at $44.22 per hour) x 910 (individuals and responsible
persons).

15.

There are no program changes or adjustments associated with this
collection.

16.

The results of this collection will not be published.

17.

ATF does not request approval to not display the expiration date of the
OMB approval for this collection.

18.

There are no exceptions to the certification statement.

B. Collections of Information Employing Statistical Methods
No statistical methods are associated with this collection.