41F - What you need to know

For the past 4 months, the most frequently asked question at the shop is “How do I beat the new 41F rule change?” The answer is straightforward; Form 4 applications must be submitted / postmarked before the July 13, 2016 rule change.

For Texas residents, this means you must purchase from Capitol Armory and provide your complete trust paperwork by July 10, 2016. We will ensure your forms are filed on or before July 12, 2016 and will guarantee submission under the current rules (see guarantee below).

For non-Texas residents, your local dealer must submit your Form 4 before July 13, 2016.

Form 4s postmarked prior to July 13, 2016 WILL NOT be affected by the 41F rule change and will be considered under the current rules.

What if I submit after the July 13, 2016 deadline?

Submission after July 13, 2016 (post 41F rule change) adds additional steps to the process. Each responsible party of the trust or corporation will be required to submit the following:

• A completed ATF Form 5320.23 (information about the responsible party)
• One (1) 2x2-inch passport photo
• Two (2) FBI FD-258 fingerprint cards

At the time of this article, a responsible party is interpreted as a co-trustee and does not apply to beneficiaries or successor trustees. If you are establishing a new trust, it may be beneficial to keep your co-trustee list to a minimum. Persons with trusts that include many co-trustees may find it easier to remove “the extras” prior to purchasing NFA items. If you decide to add co-trustees after form submission, you will not need to notify the ATF.

41F requires that a copy of the Form 5320.23 be sent to your local Chief Law Enforcement Officer (CLEO) but will not require their approval or sign off; it is simply a notification. For customers transferring as an individual in locales where CLEO sign off was not an option, 41F makes it easier to obtain NFA items.

What happens if my Form 3 is not approved prior to July 13, 2016?

If you are a non-Texas resident, Capitol Armory will file a Form 3 application (dealer to dealer) to your preferred local dealer. Form 3s are currently running 6-9 weeks from the time we submit the Form 3 to the time we receive the approval back in the mail. While we expect these time to decrease in June and July, there is always a chance that a Form 3 will not return within the expected time frame (circumstances out of our control). If time is running short, contact your local dealer to see if they will submit the Form 4 prior to physically receiving the item and the approved Form 3. Capitol Armory provides a copy of the Form 3 (transfer details to include serial number) to you upon submission to the ATF. This information can be used by your local dealer to file the Form 4 early.

Filing a Form 4 prior to receiving the approved Form 3 is a contentious topic. Please keep in mind the following:

• Currently there is a two (2) month backlog at the ATF for entering Form 4s into the ATF system, and as more examiners are tasked with Form 3s, this time frame is expected to increase.
• The ATF has stated it is a common practice and there are no rules against the practice
• Certain dealers/distributors have made it common practice to file Form 4s prior to receiving Form 3 approvals, and frequently a Form 4 is filed just days after filing a Form 3 for the same serial number.

Will you guarantee my purchase is exempt from the new 41F rules?

If you are a Texas resident filing with a trust or corporation and Capitol Armory is submitting your Form 4 paperwork, we guarantee your transfer is exempt from the new 41F rules if your purchase meets the two following conditions:

1. Place your order by July 10, 2016. For easy pay orders, we must receive your down payment by July 10, 2016. For orders with payment via check, we must receive your payment by July 10, 2016.
2. Provide complete trust documentation by July 10, 2016.

If you meet the above two conditions and we fail to secure your Form 4 under the pre-41F rules, Capitol Armory will offer a true purchase guarantee with your choice of one of the following:

• Cancellation of order and full refund of funds paid toward purchase (Easy Pay service fees are non-refundable); or
• Capitol Armory will pay the $200 ATF transfer fee “tax stamp” for each NFA item that is not exempt from the new rules.

If you are a non-Texas resident and we are filing a Form 3 to your local dealer, we cannot guarantee a transfer will be exempt from the new 41F rules as your local dealer will be handling your Form 4 transfer.