ATF Impending Regulation Change - Identifying a Legal Entity

[Bubbles]

Looks like they're targeting folks who use trusts for NFA transfers.

http://frwebgate1.access.gpo.gov/cgi-bin/TEXTgate.cgi?WAISdocID=MhMjOg/11/1/0&WAISaction=retrieve

[Federal Register: December 15, 2010 (Volume 75, Number 240)]
[Notices]
[Page 78268]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15de10-84]

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––-

DEPARTMENT OF JUSTICE

Bureau of Alcohol, Tobacco, Firearms and Explosives

[OMB Number 1140-NEW]


Agency Information Collection Activities: Proposed Collection;
Comments Requested

ACTION: 60-Day Notice of Information Collection Under Review: Letter
Requesting Supporting Documents Identifying a Legal Entity.

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––-

The Department of Justice (DOJ), Bureau of Alcohol, Tobacco,
Firearms and Explosives (ATF), will be submitting the following
information collection request to the Office of Management and Budget
(OMB) for review and approval in accordance with the Paperwork
Reduction Act of 1995. This notice requests comments from the public
and affected agencies concerning the proposed information collection.
Comments are encouraged and will be accepted on or before February 14,
2011. This process is conducted in accordance with 5 CFR 1320.10.
If you have comments especially on the estimated public burden or
associated response time, suggestions, or need a copy of the proposed
information collection instrument with instructions or additional
information, please contact Gary Schaible, [email protected]
National Firearms Act Branch, 99 New York Avenue, NE., Washington, DC
20226 Fax (202) 648-9601.
Written comments and suggestions from the public and affected
agencies concerning the proposed information collection are encouraged.
Your comments should address one or more of the following four points:

––Evaluate whether the proposed collection of information is necessary
for the proper performance of the functions of the agency's including
whether the information will have practical utility;
––Evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
––Enhance the quality, utility, and clarity of the information to be
collected; and
––Minimize the burden of the collection of information on those who are
to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.

Summary of Collection:
(1) Type of Information Collection: New.
(2) Title of the Form/Collection: Letter Requesting Supporting
Documents Identifying a Legal Entity.
(3) Agency form number, if any, and the applicable component of the
Department of Justice sponsoring the collection: Form Number: None.
Bureau of Alcohol, Tobacco, Firearms and Explosives.
(4) Affected public who will be asked or required to respond:
Primary: Business or other for-profit.
Other: None.
Need for Collection: The collection of information will be used to
determine the lawful existence and validity of a legal entity before
ATF approves the transfer of an NFA firearm to that entity.
(5) An estimate of the total number of respondents and the amount
of time estimated for an average respondent to respond: It is estimated
that 5,000 respondents will spend approximately 30 minutes to compile
documentation requested by the letter.
(6) An estimate of the total public burden (in hours) associated
with the collection: There are an estimated 5,000 annual total burden
hours associated with this collection.
If additional information is required contact: Lynn Murray,
Department Clearance Officer, Policy and Planning Staff, Justice
Management Division, Department of Justice, 2 Constitution Square, Room
2E-502, 145 N Street, NE., Washington, DC 20530.

Dated: December 9, 2010.
Lynn Murray,
Department Clearance Officer, PRA, U.S. Department of Justice.
[FR Doc. 2010-31401 Filed 12-14-10; 8:45 am]
BILLING CODE 4410-FY-P

 

[PTK]

They're not going after anyone - they're making sure that people who who trusts to do NFA transfers have legal, properly worded trusts that abide by the resident's state laws as well.

Also, it seems even more targeted than that... They only expect to ask 5,000 people, and this really shows they're not worrying about the individual transfers:

Affected public who will be asked or required to respond:
Primary: Business or other for-profit.
Other: None.

Besides, whenever I did an NFA transfer, I had to submit the entire trust to the BATFE as well.

 

[Bubbles]

My concern is that ATF already requires the documentation for the trust/LLC/etc when you file a Form 1 or Form 4. Rule changes are filed because they wish to do something they don't have the power to do (e.g. the multiple sales purchase reporting on rifles).

 

[TexasRifleman]

My concern is that ATF already requires the documentation for the trust/LLC/etc when you file a Form 1 or Form 4.

Tthe average ATF agent working an NFA desk is not an attorney and does't have the legal knowledge to judge the accuracy of any documents for all 50 states.

Sounds like this is going to require a letter from an attorney or something a bit more detailed. Just a guess.

(2) Title of the Form/Collection: Letter Requesting Supporting
Documents Identifying a Legal Entity.

If that's the case the only people this will impact are the "do it yourself" trust guys, and many legal folks have been warning them for years about this.

 

[PTK]

I truly believe that it has more to do with the first few do-it-yourself folks that did this - they weren't required to send in a copy of their trust.

Also, why would it say they're asking <5,000 people, and businesses, at that?

 

[sig228]

Not Just Trusts

I'm sure this will apply to corporate (INC and LLC) entities also. Will need to establish proof of the corporate entity's existence. Although most of this corporate info is public information (www.sunbiz.org in Florida) I'm sure ATF doesn't want its agents wasting any more time than they need to when processing apps. I always wondered if they were verifying the legality of the corporate and trust entities on forms 1 and 4 (which entities conveniently bypass the personal scrutiny of local LEO sign-offs). Looks to me now like they might not have been.

My concern is that ATF already requires the documentation for the trust/LLC/etc when you file a Form 1 or Form 4.

BTW, Bubbles, FYI, NO corporate documentation is currently required to be submitted with a Form 1. Not sure about the Form 4.