USCODE-2023-title26-subtitleE-chap53-subchapC-sec5861

Page 3289

§ 5861

TITLE 26—INTERNAL REVENUE CODE

(b) Making
A firearm may be made without payment of
the making tax imposed by section 5821 by, or on
behalf of, any State, or possession of the United
States, any political subdivision thereof, or any
official police organization of such a government entity engaged in criminal investigations.
(c) Right to exemption
No firearm may be transferred or made exempt from tax under this section unless the
transfer or making is performed pursuant to an
application in such form and manner as the Secretary may by regulations prescribe.
(Added Pub. L. 90–618, title II, § 201, Oct. 22, 1968,
82 Stat. 1233; amended Pub. L. 94–455, title XIX,
§ 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
Editorial Notes
PRIOR PROVISIONS
A prior section 5853, act Aug. 16, 1954, ch. 736, 68A
Stat. 728, related to importing firearms illegally, prior
to the general revision of this chapter by Pub. L. 90–618.
See section 5861(k) of this title and section 922(a) of
Title 18, Crimes and Criminal Procedure.
Provisions similar to those comprising this section
were contained in prior section 5821, act Aug. 16, 1954,
ch. 736, 68A Stat. 724, as amended by act Sept. 2, 1958,
Pub. L. 85–859, title II, § 203(d), 72 Stat. 1427, 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’’.

§ 5854. Exportation of firearms exempt from
transfer tax
A firearm may be exported without payment
of the transfer tax imposed under section 5811
provided that proof of the exportation is furnished in such form and manner as the Secretary may by regulations prescribe.
(Added Pub. L. 90–618, title II, § 201, Oct. 22, 1968,
82 Stat. 1234; amended Pub. L. 94–455, title XIX,
§ 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
Editorial Notes
PRIOR PROVISIONS
A prior section 5854, Pub. L. 85–859, title II, § 203(i)(1),
Sept. 2, 1958, 72 Stat. 1428, related to failure to register
and pay special tax, prior to the general revision of this
chapter by Pub. L. 90–618. See section 5861(a), (d) of this
title and section 923 of Title 18, Crimes and Criminal
Procedure.
Provisions similar to those comprising this section
were contained in prior section 5844, act Aug. 16, 1954,
ch. 736, 68A Stat. 725, prior to the general revision of
this chapter by Pub. L. 90–618.
A prior section 5855, Pub. L. 85–859, title II, § 203(i)(1),
Sept. 2, 1958, 72 Stat. 1428, made it unlawful for any person required to comply with the provisions of sections
5814, 5821, and 5841 of this title, to ship, carry or deliver
any firearm in interstate commerce if such sections
had not been complied with, prior to the general revision of this chapter by Pub. L. 90–618.
AMENDMENTS
1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after
‘‘Secretary’’.

Subchapter C—Prohibited Acts
Sec.

5861.

Prohibited acts.1
Editorial Notes
PRIOR PROVISIONS

A prior subchapter C consisted of sections 5851 to
5854, prior to the general revision of this chapter by
Pub. L. 90–618, title II, § 201, Oct. 22, 1968, 82 Stat. 1227.

§ 5861. Prohibited acts
It shall be unlawful for any person—
(a) to engage in business as a manufacturer
or importer of, or dealer in, firearms without
having paid the special (occupational) tax required by section 5801 for his business or having registered as required by section 5802; or
(b) to receive or possess a firearm transferred to him in violation of the provisions of
this chapter; or
(c) to receive or possess a firearm made in
violation of the provisions of this chapter; or
(d) to receive or possess a firearm which is
not registered to him in the National Firearms Registration and Transfer Record; or
(e) to transfer a firearm in violation of the
provisions of this chapter; or
(f) to make a firearm in violation of the provisions of this chapter; or
(g) to obliterate, remove, change, or alter
the serial number or other identification of a
firearm required by this chapter; or
(h) to receive or possess a firearm having the
serial number or other identification required
by this chapter obliterated, removed, changed,
or altered; or
(i) to receive or possess a firearm which is
not identified by a serial number as required
by this chapter; or
(j) to transport, deliver, or receive any firearm in interstate commerce which has not
been registered as required by this chapter; or
(k) to receive or possess a firearm which has
been imported or brought into the United
States in violation of section 5844; or
(l) to make, or cause the making of, a false
entry on any application, return, or record required by this chapter, knowing such entry to
be false.
(Added Pub. L. 90–618, title II, § 201, Oct. 22, 1968,
82 Stat. 1234.)
Editorial Notes
PRIOR PROVISIONS
A prior section 5861, act Aug. 16, 1954, ch. 736, 68A
Stat. 729, relating to penalties, was omitted in the general revision of this chapter by Pub. L. 90–618.
Provisions similar to those comprising subsecs. (a),
(b), (d), (g), (j), and (k) of this section were contained
in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 90–618, as follows:
Present subsecs.:
(a) ..................................
(b) ..................................

Prior sections
5854.
5851.

1 Editorially supplied. Subchapter added by Pub. L. 90–618 without a subchapter analysis.

§ 5871

TITLE 26—INTERNAL REVENUE CODE

Present subsecs.:

Prior sections

(d) ..................................
(g) ..................................
(j) ...................................
(k) ..................................

5854.
5852.
5855.
5853.

The prior sections 5851 to 5853, act Aug. 16, 1954, ch.
736, are set out in 68A Stat. 728.
The prior sections 5854 and 5855, Pub. L. 85–859, title
II, § 203(i)(1), Sept. 2, 1958, are set out in 72 Stat. 1428.
A prior section 5862, act Aug. 16, 1954, ch. 736, 68A
Stat. 729, relating to the forfeiture and disposal of any
firearm involved in any violation of the provisions of
this chapter or any regulation promulgated thereunder,
was omitted in the general revision of this chapter by
Pub. L. 90–618. The provisions of prior section 5862 of
this title are covered by section 5872 of this title.
Statutory Notes and Related Subsidiaries
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.

Subchapter D—Penalties and Forfeitures
Sec.

5871.
5872.

Penalties.
Forfeitures.
Editorial Notes
PRIOR PROVISIONS

A prior subchapter D, consisted of sections 5861 and
5862, prior to the general revision of this chapter by
Pub. L. 90–618, title II, § 201, Oct. 22, 1968, 82 Stat. 1227.

Page 3290

§ 5872. Forfeitures
(a) Laws applicable
Any firearm involved in any violation of the
provisions of this chapter shall be subject to seizure and forfeiture, and (except as provided in
subsection (b)) all the provisions of internal revenue laws relating to searches, seizures, and forfeitures of unstamped articles are extended to
and made to apply to the articles taxed under
this chapter, and the persons to whom this chapter applies.
(b) Disposal
In the case of the forfeiture of any firearm by
reason of a violation of this chapter, no notice
of public sale shall be required; no such firearm
shall be sold at public sale; if such firearm is
forfeited for a violation of this chapter and
there is no remission or mitigation of forfeiture
thereof, it shall be delivered by the Secretary to
the Administrator of General Services, General
Services Administration, who may order such
firearm destroyed or may sell it to any State, or
possession, or political subdivision thereof, or at
the request of the Secretary, may authorize its
retention for official use of the Treasury Department, or may transfer it without charge to any
executive department or independent establishment of the Government for use by it.
(Added Pub. L. 90–618, title II, § 201, Oct. 22, 1968,
82 Stat. 1235; amended Pub. L. 94–455, title XIX,
§ 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
Editorial Notes

§ 5871. Penalties
Any person who violates or fails to comply
with any provision of this chapter shall, upon
conviction, be fined not more than $10,000, or be
imprisoned not more than ten years, or both.
(Added Pub. L. 90–618, title II, § 201, Oct. 22, 1968,
82 Stat. 1234; amended Pub. L. 98–473, title II,
§ 227, Oct. 12, 1984, 98 Stat. 2030.)

PRIOR PROVISIONS
Provisions similar to those comprising this section
were contained in prior section 5862, act Aug. 16, 1954,
ch. 736, 68A Stat. 729, prior to the general revision of
this chapter by Pub. L. 90–618.
AMENDMENTS
1976—Subsec. (b). Pub. L. 94–455 struck out ‘‘or his
delegate’’ after ‘‘Secretary’’ wherever appearing.

Editorial Notes
Statutory Notes and Related Subsidiaries

PRIOR PROVISIONS
A prior section 5871, act Aug. 16, 1954, ch. 736, 68A
Stat. 729, consisted of provisions similar to those comprising this section, prior to the general revision of this
chapter by Pub. L. 90–618.
Provisions similar to those comprising this section
were contained in prior section 5861, act Aug. 16, 1954,
ch. 736, 68A Stat. 729, prior to the general revision of
this chapter by Pub. L. 90–618.

EFFECTIVE DATE
Section effective on first day of first month following
October 1968, see section 207(a) of Pub. L. 90–618, set out
as a note under section 5801 of this title.

CHAPTER 54—GREENMAIL
Sec.

5881.

Greenmail.

AMENDMENTS
1984—Pub. L. 98–473 struck out ‘‘, and shall become
eligible for parole as the Board of Parole shall determine’’ after ‘‘or both’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1984 AMENDMENT
Pub. L. 98–473, title II, § 235(a)(1)(B)(ii)(IV), Oct. 12,
1984, 98 Stat. 2032, provided that the amendment made
by section 227 of Pub. L. 98–473 is effective Oct. 12, 1984.
EFFECTIVE DATE
Section effective on first day of first month following
October 1968, see section 207(a) of Pub. L. 90–618, set out
as a note under section 5801 of this title.

§ 5881. Greenmail
(a) Imposition of tax
There is hereby imposed on any person who receives greenmail a tax equal to 50 percent of
gain or other income of such person by reason of
such receipt.
(b) Greenmail
For purposes of this section, the term
‘‘greenmail’’ means any consideration transferred by a corporation (or any person acting in
concert with such corporation) to directly or indirectly acquire stock of such corporation from
any shareholder if—