Rev. Rul. 57-227

The Internal Revenue Service emphasizes the distinction between an `unserviceable' firearm and a `DEWAT' as defined in Revenue Ruling 55-590, C.B. 1955-2, 483, for purposes of Chapter 53 of the Internal Revenue Code of 1954, and announces that such distinction will be enforced in order to avoid abuses of the ruling in respect of DEWATS.

The minimum requirements for the process of transforming a firearm into a DEWAT were established with the assistance of recognized ordnance experts, and the Internal Revenue Service has consistently held that the deactivation must be witnessed by the investigator who certifies as to the condition of the DEWAT. To insure that the minimum requirements would be met, investigators of the Alcohol and Tobacco Tax Division were instructed to make the necessary arrangements to have firearms deactivated by experienced welders under their supervision. Such deactivation has ordinarily been accomplished at no expense to the individual owners of the firearms. This procedure was adopted, and has been continued, (1) since experience has shown that improper welding increases the possibility of reactivating a DEWAT and, (2) to eliminate any possibility of substitute brazing, soldering, or other process to simulate steel welding in `deactivating' firearms.

It is the position of the Internal Revenue Service that only such firearms covered by section 5848 of the Internal Revenue Code of 1954 which have been deactivated in the prescribed manner under the supervision of Alcohol and Tobacco Tax investigators may be considered in the category of DEWATS. Any firearms which have not been deactivated in the prescribed manner under the supervision of such officers come within the purview of Chapter 53 of the Internal Revenue Code of 1954 notwithstanding their operating condition, inasmuch as the exemption afforded `unserviceable' firearms is conditional and applicable only in respect to the transfer tax imposed under section 5811(a) of the Code.

A `DEWAT' and an `unserviceable' firearm under Chapter 53 of the Code are both firearms under the Federal Firearms Act, 15 U.S.C. 901-909, and, accordingly, and subject to the applicable provisions of the Federal Firearms Act and the regulations issued pursuant thereto since `any part or parts' of a weapon is a `firearm' as defined therein.