Here is a report from yesteryear detailing a previous skirmish over manufacturer’s licenses.
Do you need a manufacturer’s license?
Clark responded with a letter to Wendorff in which he pointed out that, “According to Subchapter D of Chapter 32 of the IRS Code of 1954 as amended, Sections 4161 and 418 1, dealers who produce less than 50 units per annum are not liable for the excise tax.
“In 1989, we produced only 22 units; so unless we are advised otherwise, we will assume we owe no excise taxes at this time.”
That letter went out in late April; and as of late July, Clark had not heard otherwise. When I talked with Clark at that time, he told me, “All we were trying to do was get some questions answered.”
This exchange of letters is of special significance in light of the fact that – as I reported in the May issue – some small makers of custom guns (less than 50 per year) have been informed by the IRS that they owe excise tax on all firearms built between 1983 and 1990.
The IRS is apparently claiming that the 1982 law exempting small makers applied to 1982 only. However, there is evidence that they back off if challenged although you still have an attorney to pay. More on that in a later column.
Beginning next Jan. 1, ATF will be in charge of collecting that tax.
Then there is the legislative front! As you are probably painfully aware, news from the federal level regarding the gun issue reads like a war report – with the enemy on the offensive.