For an NFA collector it is truly a special day when an approved Form 4 and the accompanying tax stamp finally arrive. After all, you have waited long months for this day and suddenly it is here.
But don’t be too quick to grab the car keys and head out the door. In the excitement of the moment it is easy to forget that there is a small but important administrative task that you must perform before you can go and pick up your new toy from the dealer.
Do you remember when we first drafted your NFA trust? We talked about the need to place an initial asset in the trust and I explained why it could not be the item that you planned to use the trust to purchase … not even if you had already paid for it.
I explained that the trust does not truly ‘own’ an NFA item until the Form 4 has been approved and the tax stamp has been received. I may have even used the term ‘non-possessory equity interest’ to describe what your prepayment gave you if it wasn’t actual ‘ownership’.
But now you have the tax stamp in hand and you want to go pick up your latest acquisition. What do you need to do?
The short answer is that the newly approved NFA item must be added to Schedule A of your trust. As for how this is to be accomplished, you have two option.
If you are comfortable with Microsoft Word, you may use the Word document I provided when we formed your trust to generate a new Schedule A with the newly approved item added to the list of assets. You will want to include the make, mode, serial number, caliber (if applicable), and tax stamp number.
If this is a step that you do not feel comfortable doing on your own, remember that I am always happy to make this change for you free of charge. You need only email or call and I will make the change for you and send you an updated copy of the schedule.
Regardless of how it is modified, you will then want to print the new Schedule A, sign and date it, and replace that page in all extant copies of the trust.
With that having been done, you may now take a copy of the trust along with the approved Form 4 and tax stamp and head excitedly to the dealer.