Rev. Proc. 59-14

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to invite attention to the provisions of section 179.151 of the Regulations relating to Machine Guns and Certain Other Firearms and to solicit the cooperation of importers, manufacturers and dealers in firearms and others concerned in the uniform preparation of timely, complete and accurate returns, Form 2 (Firearms) `Return of Firearms Manufactured, Imported, or Received,' and Form 3 (Firearms) `Return of Firearms Transferred or Otherwise Disposed of' reflecting commercial transactions in machine guns and certain other firearms coming within the purview of the National Firearms Act, Chapter 53, Internal Revenue Code.

SEC. 2. BACKGROUND.

The use of Form 2 (Firearms) and Form 3 (Firearms) is prescribed only for use by registered importers, manufacturers and dealers in reporting commercial transactions in firearms coming within the purview of the National Firearms Act. These returns are filed at the close of each business day with the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington 25, D.C. Space is provided on each return to record an individual description of at least 15 firearms, and a separate line should be used for each individual firearm. The only exception to this rule applies in recording bulk quantities of identical firearms bearing consecutive manufacturer's serial numbers in which case the first and last number in the series, plus the total quantity of firearms in the lot may be entered in the column captioned `Serial No.' Where additional sheets are required to record bulk transactions involving firearms with serial numbers not in numerical sequence, additional forms should be used and a notation made at the top of each form to designate the total number of pages (forms) in the series as well as the individual page within such series (Example: Page (1) of (7) pages). The practice of attaching a separate schedule listing the serial numbers of firearms which are further described on accompanying Form 2 (Firearms) or Form 3 (Firearms) is not authorized and should be discontinued immediately.

SEC. 3. VERIFICATION AND REPORTING OF SERIAL NUMBERS.

Section 5843 of the Code provides that the manufacturer's serial number must be stamped on a firearm for positive individual identification purposes. Section 5852 of the Code makes it unlawful to remove or change such identification marks. Each firearm reported on Form 2 (Firearms) as having been imported, produced, or received represents a potential revenue to the Government of $200 upon subsequent transfer thereof, and registered importers, manufacturers and dealers are held accountable for the tax imposed under section 5811 of the Code unless the subsequent transfer is exempt by virtue of section 5812. Accordingly, it is essential that the returns accurately reflect the manufacturer's serial number stamped on the weapon, and experience has shown that this may best be accomplished by verifying the serial numbers to be shown in the returns and/or commercial invoices, etc., by actual comparison with the serial number stamped on the weapon. Where a discrepancy is noted, the matter should be reported to the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington 25, D.C. immediately for appropriate instructions prior to filing the return.

SEC. 4. INQUIRIES.

Inquiries in regard to this Revenue Procedure should refer to the number thereof and should be directed to the Director, Alcohol and Tobacco Tax Division, attention: O:AT:EF.