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Can You Get a Refund for Your ATF 5320.1 Form 1 NFA Firearm Tax Stamp?

by National Gun Trusts

We recently were asked if you get a refund for your ATF Form 1 Tax Stamp.  The answer is yes and there are restrictions to the refund from the ATF.  Your ATF Form 1 firearm must not be manufactured or made yet.  For example, you apply to manufacturer a silencer, but you never did manufacturer the silencer.  You are eligible for a refund from the ATF for your $200 tax stamp.  Another example would be, you apply to manufacture a SBR, but you never manufacture the SBR and still have a lower without a SBR upper receiver.  This case too, would be eligible for a refund from the ATF for your $200 tax stamp.  For further clarification you can read the rules and regulations for the ATF refund on your ATF Form 1 items.  This can be located on the ATF Form 1 itself under the Definitions/Instructions section of the ATF Form 1. You can see the definition/instruction below.

5. Cancellation of Approved Application.

An approved application may be cancelled only if the firearm had not been made or modified. The maker must return the approved application with original tax stamp affixed with a written request for cancellation, citing the need and that the making of the firearm did not take place. The NFA Branch will arrange for a refund of any tax paid.

27 CFR § 479.172 Refunds - The refund claim must be made within 3 years after paying for your tax stamp. 

The claim shall be accompanied by the approved application bearing the stamp and an explanation why the tax liability was not incurred. Such claim shall be filed within 3 years next after payment of the tax.†

As indicated in this part, the transfer tax or tax on the making of a firearm is ordinarily paid by the purchase and affixing of stamps, while special tax stamps are issued in payment of special (occupational) taxes. However, in exceptional cases, transfer tax, tax on the making of firearms, and/or special (occupational) tax may be paid pursuant to assessment. Claims for refunds of such taxes, paid pursuant to assessment, shall be filed on ATF Form 2635 (5620.8) within 3 years next after payment of the taxes. Such claims shall be filed with the Chief, National Firearms Act Branch serving the region in which the tax was paid. (For provisions relating to hand-carried documents and manner of filing, see 26 CFR 301.6091-1(b) and 301.6402-2(a).) When an applicant to make or transfer a firearm wishes a refund of the tax paid on an approved application where the firearm was not made pursuant to an approved Form 1 (Firearms) or transfer of the firearm did not take place pursuant to an approved Form 4 (Firearms), the applicant shall file a claim for refund of the tax on ATF Form 2635 (5620.8) with the Director. The claim shall be accompanied by the approved application bearing the stamp and an explanation why the tax liability was not incurred. Such claim shall be filed within 3 years next after payment of the tax.†

(68A Stat. 808, 830; 26 U.S.C. 6511, 6805) [T.D. ATF-270, 53 FR 10512, Mar. 31, 1988,as amended by T.D. ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]

 

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