§5851 — Title 26 Internal Revenue Code | U.S. Code

Summary

If you owe the special occupational tax on firearms businesses under section 5801, you can be excused from paying it if you show the IRS that your business deals only with, or works only for, the United States government or one of its departments or agencies. The government can also excuse anyone making firearms for the United States from other rules in this chapter. To get the exemption, you file an application on the required form, and you must renew it on or before July 1 each year. Once approved, you are entitled to the exemptions listed on the application.

Title 26, §5851

Internal Revenue Code — Source: USLM XML via OLRC

(a)Any person required to pay special (occupational) tax under section 5801 shall be relieved from payment of that tax if he establishes to the satisfaction of the Secretary that his business is conducted exclusively with, or on behalf of, the United States or any department, independent establishment, or agency thereof. The Secretary may relieve any person manufacturing firearms for, or on behalf of, the United States from compliance with any provision of this chapter in the conduct of such business.

(b)The exemption provided for in subsection (a) of this section may be obtained by filing with the Secretary an application on such form and containing such information as may by regulations be prescribed. The exemptions must thereafter be renewed on or before July 1 of each year. Approval of the application by the Secretary shall entitle the applicant to the exemptions stated on the approved application.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5851, act Aug. 16, 1954, ch. 736, 68A Stat. 728, as amended by act Sept. 2, 1958, Pub. L. 85–859, title II, § 203(h)(1), (2), 72 Stat. 1428, related to possessing firearms illegally, prior to the general revision of this chapter by Pub. L. 90–618. See section 5861(b) of this title. Provisions similar to those comprising this section were contained in prior section 5812, act Aug. 16, 1954, ch. 736, 68A Stat. 722, prior to the general revision of this chapter by Pub. L. 90–618.

Amendments

1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on first day of first month following October 1968, see section 207 of Pub. L. 90–618, set out as a note under section 5801 of this title.

§5851 Special (occupational) Tax Exemption