To: Firearms and Ammunition Manufacturers, Importers, and Producers, and Others Concerned
This circular describes the new firearms and ammunition excise tax payment procedures implemented in response to changes to the Internal Revenue Code of 1986 (IRC) made by the Firearms Excise Tax Improvement Act of 2010.
The Firearms Excise Tax Improvement Act of 2010, Public Law 111-237, was signed into law on August 16, 2010. This law amends subsection (d) of section 6302 of the IRC so that firearms and ammunition excise taxes imposed under section 4181 shall be due and payable on the date for filing the return for such taxes. The law became effective upon enactment.
This Industry Circular supersedes and cancels the information in ATF Industry Circular 1995-3.
Prior to August 16, 2010, with limited exceptions, most firearms or ammunition manufacturers, importers, or producers who were required to file a quarterly excise tax return, on Alcohol and Tobacco Tax and Trade Bureau (TTB) Form 5300.26, were required to make a deposit of tax for each semimonthly period, pursuant to 27 CFR 53.159(b). The Firearms Excise Tax Improvement Act of 2010 effectively eliminated the semimonthly deposit requirement for firearms and ammunition excise taxpayers by changing the due date for firearms and ammunition excise tax payments to correspond with the date for filing the tax return. Accordingly, TTB has discontinued use of the Firearms and Ammunition Excise Tax (FAET) deposit form, TTB Form 5300.27. We (TTB) will be amending our regulations and forms in response to the statutory change.
The final deposit for the semimonthly period of August 1-15, 2010, was due on August 24, 2010. The FAET payments for articles sold by the manufacturer, producer, or importer on or after August 16, 2010, will be calculated and due quarterly. Manufacturers, importers, or producers who have already made deposit payments for the third quarter of 2010 will subtract those deposit amounts from their total tax liability after the end of the quarter and pay the remaining tax due by November 1, 2010, the due date for the quarterly return. Beginning with the fourth quarter of 2010, October 1 through December 31, 2010, all FAET payments will be due quarterly.
Method and Place of Payment.
Taxpayers should continue to use and submit TTB Form 5300.26, the Federal Firearms and Ammunition Excise Tax Return, quarterly with their payments. The address of tax payments and returns remains the same: TTB, Excise Tax, P.O. Box 979055, St. Louis, MO 63197-9000.
If you have any questions concerning this circular, please contact the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center (NRC), FAET Unit, 8002 Federal Office Building, 550 Main Street, Cincinnati, OH 45202-5215 or by telephone at 1-877-882-3277.
John J. Manfreda
Alcohol and Tobacco Tax and Trade Bureau