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Updated Version of Firearms and Ammunition Excise Tax (FAET) Return (TTB F 5300.26)

Posted 02/22/2019

Academy

On February 8, 2019, TTB published a new version of the Federal Firearms and Ammunition Quarterly Excise Tax Return (TTB F 5300.26). The updated FAET Return clarifies certain data fields and form instructions to help taxpayers file accurate returns and to allow TTB to better verify a taxpayer’s liability without the need to request additional information.

Updates include:

  • Added instructional language to Schedules A and B (Increasing and Decreasing Adjustments, respectively) to clarify that they are used to claim adjustments for prior quarter activity
  • Added a “printed” name field to the signature area of the form
  • Updated instructions to remove obsolete language and improve clarity
  • Reorganized data fields in Part II – Calculation of Taxes on Sales or Uses During This Tax Period and clarified changes in Part III – Calculation of Tax Liability for This Tax Period. For more details on these changes see the information below.

FAET taxpayers should use the new FAET Return for the first quarterly tax period of 2019 (January 1 through March 31,with returns due April 30, 2019).

The updated FAET Return is available for electronic filing in Pay.gov, as well as in fillable pdf format.

Changes to Part II

We reorganized and revised the data fields in Part II to give taxpayers the opportunity to report with greater specificity any adjustments to the sales and/or uses forming the basis of their tax liability. Changes include:

  • Consolidated the reporting of articles sold and those put to business uses
  • Broke down the reporting of eligible adjustments into three categories:
    • Included excise tax,
    • Non-taxable articles,
    • Other

In the past, TTB has noted that taxpayers frequently make errors regarding adjustments for tax included in the sale price of the firearm and for non-taxable articles, which are the most common adjustments made by FAET taxpayers. We believe that separating the reporting categories will provide the taxpayer and TTB the most accurate picture of liability. Other adjustments, such as those for local advertising or discounts, can be reported in the catch-all “other” category.

All of the Part II changes are reflected in the chart below.

Previous FAET Return

New FAET Return

Line Number

Line Description

Line Number

Line Description

8.

The sales price of all articles sold

8.

The sales price of all articles sold and/or put to a business use

9.

The sales price of all articles sold tax-exempt

9.

The sales price of all articles sold tax-exempt

10.

The sales price of all articles sold tax-free

10.

The sales price of all articles sold tax-free

11.

Taxable sales (Item 8 minus Item 9 and Item 10)

11.

Taxable sales and uses (Item 8 minus Item 9 and Item 10)

12.

Eligible adjustments

12.

Eligible adjustments – included excise tax

13.

Adjusted taxable sales (Item 11 plus or minus Item 12)

13.

Eligible adjustments – non-taxable articles

14.

The sales price of all articles used

14.

Eligible adjustments – other

15.

Total taxable sales and uses (Item 13 plus Item 14)

15.

Adjusted taxable sales and uses (Item 11 minus Items 12, 13, and 14)

Tax Rates

Tax Rates

16.

Total tax (Multiply Item 15 by the Tax Rate above)

16.

Total tax (Multiply Item 15 by the Tax Rate above)

Changes to Part III:

  • We added reminder text to lines 18 and 20, concerning increasing adjustments and decreasing adjustments, respectively. 

The added text reminds taxpayers that these adjustments are used to account for prior quarter activity. 

  • Increasing adjustments are made to account for underpayments from a prior quarter
  • Decreasing adjustments are made to account for overpayments from a prior quarter. 

If you have any questions about the new FAET Return, you may contact the National Revenue Center online or call 877-882-3277 (Toll Free).

 

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Page last reviewed: February 22, 2019
Page last updated: February 22, 2019
Maintained by: Trade Investigations Division (MCO)

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