Excise Tax on
Firearms and Ammunition
All Firearms Licensees and Others Concerned:
PURPOSE. The purpose of this circular is to advise industry
members of the upcoming transfer of responsibility for the
administration and collection of firearms and ammunition
excise taxes.
On January 1, 1991, the Bureau of Alcohol, Tobacco and
Firearms (ATF) will assume from the Internal Revenue Service
(IRS) the responsibility for the collection function on
taxes imposed under Section 4181 of the Internal Revenue
Code of 1986, as amended.
Section 4181 of the Code imposes taxes on the sale or use of
firearms and ammunition by the manufacturer, producer, or
importer of the article. Tax is imposed on the sale or use
at the rates of ten percent (10%) on pistols and revolvers
and eleven percent (11%) on firearms (other than pistols and
revolvers) and shells and cartridges.
Taxpayers incurring a tax liability on the sale or use of
firearms and ammunition on or after January 1, 1991, will
make tax deposits and file returns with ATF. Those
individuals who are liable for firearms and ammunition
excise taxes and will be making tax deposits and filing tax
returns with ATF must obtain an Employer Identification
Number, if they do not already have one, prior to making tax
deposits or filing tax returns with ATF. An Employer
Identification Number can be obtained by filing an
application with IRS on Form SS-4. Form SS-4 may be
obtained from any ATF regional office or any Internal
Revenue district office or service center.
An information packet, containing tax returns (ATF Form
5300.26) and deposit forms (ATF Form 5300.27), will be sent
to all licensed manufacturers and/or importers in the near
future. Taxpayers are cautioned to correctly file returns
and make deposits during this transition period. All
deposits and returns for tax liability incurred on or before
December 31, 1990, should be filed with IRS.
Inquiries. Inquiries concerning the subject matter of this
circular should be made through the office of the Chief,
Technical Services for the region in which your principal
business, office or agency, or legal residence is located.
Chief, Technical Services |
Phone Number |
Federal Building, Room 6519
550 Main Street
Cincinnati, Ohio 45202 |
(513) 684-3334 |
841 Chestnut Bldg.,
3rd Floor
Philadelphia, Pennsylvania 19107 |
(215) 597-4107 |
2600 Century Parkway NE, Suite 305
Atlanta, Georgia 30345-3104 |
(404) 679-5080 |
1114 Commerce Street, 7th Floor
Dallas, Texas 75242 |
(214) 767-2281 |
221 Main Street,
11th Floor
San Francisco, California 94105-2708 |
(415) 744-7011 |
Director |