On occasion the issue arises as to whether a Federal Firearms Licensee (FFL) can obtain a refund of his/her/its Special Occupation Tax that was previously paid but not utilized. There is very little information on this topic and there are no regulations that speak to it directly. However, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF or BATFE) has stated, “A refund can only be made if you were not in the NFA business at all during the Tax Year.” The ATF has further clarified (although, not really) that “the fact that you did not make any acquisitions or dispositions of NFA firearms during the Tax Year does not mean that you can claim a refund of special tax.”
So what does this mean? It means that if you paid your SOT but did not perform any transfers and did not offer the service to the public (AKA ads stating that you will do NFA transfers for X dollars), you should be entitled to refund of your SOT. While there is no specific form available, the ATF does state that the request should be made to the NFA Branch, which is responsible for issuing and administering SOTs. I would suggest sending any correspondence certified mail, return receipt and stating in the request for a refund that in addition to not performing any transfers, you also did not advertise, promote, or otherwise attempt to conduct any form of business with your SOT.
If you have questions on obtaining a refund of your SOT or wish to discuss applying for your FFL or SOT, give me a call so that we can discuss your needs.
Published by Joshua Prince, Esq.
With our 2nd Amendment rights being attacked at both the Federal and State level, and the ATF (Burea of Alcohol, Tobacco, Firearms, and Explosives) trying to close down FFLs (Federal Firearms Licensees) for minor infractions while making FFLs the scapegoat when the ATF's records are inaccurate, I want to take this opportunity to introduce myself. I am one of only a handful of attorneys across the US that practices in the niche area of law known as firearms law. I decided to concentrate my legal practice on firearms law not only because I am a shooter and firearms enthusiast, but also to ensure that our inalienable Right to Keep and Bear Arms is never encroached upon.
I handle cases at the Federal and State level for both FFLs and individuals. At the federal and state levels for individuals, I actively defend the 2nd Amendment of the US Constitution and Section 21 of the PA Constitution, as well as, help individuals with:
- License to Carry Firearms Denials;
- Challenges to Erroneous PICS Denials;
- Relief from Firearms Disabilities;
- Estate Planning Advice;
- Gun/NFA Trusts; and
- 42 USC 1983 Actions for Deprivation of Civil Rights
At both the state and federal levels, I represent FFLs and SOTs throughout Pennsylvania and the US regarding:
- ATF Compliance Inspections;
- Warning Letters and Hearings;
- FFL Revocations;
- Corporate Structure Advice
- Indoor/Outdoor Range Implementation; and
- Forfeiture Proceedings
In following my love for firearms and firearms law, I have taught several Continuing Legal Education (CLE) seminars on Firearms in Estates and Trusts and Firearms Law 101 for several Bar Associations, including Berks, Cumberland, and Dauphin Counties. I also planned and taught several Firearms in Estates CLE classes for the Pennsylvania Bar Institute (PBI).
While at Widener Law School, I was a member of the Widener Law Journal. I wrote an article on the Inaccuracy of the National Firearms Registration and Transfer Record (NFRTR). I also had an article published on Fee Disputes in Workers Compensation cases in the Widener Law Journal, Volume 18, No. 2.
You can often find me posting on several internet forums, including Subguns, Uzitalk, AR15, and PAFOA. I also hold PA Firearms Law classes for local ranges to inform the public on the firearm laws of the Commonwealth.
Following in my father's footsteps, I am also a Board member for the Pottstown Police Athletic League (PAL).
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