Another Small Catch In The Pistol Brace SBR Amnesty Program: You Can't Trust Your Pistol Brace SBR

There's a bit of an annoying limitation in the free tax stamp and amnesty for the arm-brace program. 

You cannot use the free tax stamp Form 1 program to place the arm-brace pistol into an NFA Trust, unless you have documentary evidence that the NFA Trust owned it before January 13, 2023.  An NFA Trust should not have been owning a non-NFA item so that's the fun with that.

The freebie is for individuals only.  

You can see the reasoning for the limitation, such as it is: 

Since it wasn't an NFA firearm before January 13, 2023, the NFA trust would not have owned it before, so it's not a free transfer to an NFA trust now that it has become by decree an NFA item as the NFA Trust was not the owner at the time, and the freebie is for the actual owners of the pistols.

Now, in addition, another reason is that they really don't like NFA Trusts.  

The Trusts take a lot longer for them to process, as they have to run background checks on all active trustees, and if you didn't have your trust done right, the beneficiaries too. They also have to check with their counsel if the trust is even legally sufficient.

You'd be surprised with the garbage a do-it-yourselfer who, instead of paying a attorney who knows how to do these rather specialized trusts, cobbles a trust together based on things they saw on the Internet can do.  As you would expect, the results aren't pretty.

On top of that, the trust owners keep screwing the legally proper trusts up by doing stuff with them without consulting their lawyer (such as adding trustees willy-nilly and keeping the same person as a successor trustee when they are an active trustee, and other fun and games). Many headaches ensue.

In short, I think they're tired of having to process NFA Trusts and the shenanigans involved in them and want individual Form 1s as they are easier to get processed.  

In short, if you want to put your arm-brace pistol into a NFA Trust you either have to do the freebie to yourself first and then do a $200 Form 1 transfer to your trust later.  

The other option is you should disassemble the firearm, do a standard paid-for Form 1 naming your Trust as the Maker, and then reassemble only (and probably out a real stock on it at that point because, why not?) when the approval is completed and you get your approved tax stamp.

Do Braced Pistols Form 1'd As SBRs Under The Amnesty Require Engraving/Marking?

It's a good question.

As you should know by now, if you have an Arm-Braced pistol, you have until May 31, 2023 to get them on a free Form 1 or you have to make them no longer an Arm-Braced pistol.

If you don't want the amnesty registration, you can by May 31, 2023 undo them by disassembly; placing a 16" or larger barrel on them; or otherwise bringing them into compliance. Or if you want to reach into your wallet, disassemble them now, then pay $200 and then after approval of a standard Form 1 reassemble them and make them an SBR.

Note that just taking the brace off an AR type pistol may not get you into compliance as if you can still shoulder the buffer tube, ATFE is taking the position that it is still an SBR and that will be consequential for you and not in a good way.

So, assuming you go the free tax stamp route on your braced pistol that is now Determined-To-Be-An-SBR-After-Prior-Determinations-Declared-It-Was-Not, do you need to have it engraved with your name and city/state as if you were doing a typical Form 1?

From the Form 1 Section K(7) that you will fill out under this program you would think so, as here's the stated requirement on the form: 

(7) Markings: The maker is required to mark the firearm with the Maker’s name, City and State as shown in item 3b. All markings are to be in compliance with 27 CFR §§ 478.92 and 479.102. Do not alter or modify the serial number of an existing firearm. Enter the existing serial number, or if a new firearm, one you create. The Maker may not duplicate any serial number placed by the Maker on any other firearm.

That would seem that you do have to mark the firearm doesn't it?

But wait, there's more.

There's an ATFE guidance that is contrary to this instruction on the form and is in the final regulation as well:

Once the firearm is registered, am I required to mark the firearm since I manufactured a short-barreled rifle (SBR)?

If the SBR equipped with a “stabilizing brace” is registered by May 31, 2023, the possessor is allowed to adopt the markings on the firearm.  The maker’s marking exception is only applicable to firearms that are registered pursuant to the final rule.  If the firearm is a personally made firearm, the possessor must mark in accordance with 27 CFR 478.92 & 479.102 prior to submitting the E-Form 1.

So, per this ruling, you do not need to engrave the amnesty-registered arms-braced pistols now declared to be SBRs so long as you didn't make the receiver yourself from an 80% lower or such.  Certainly another reason to utilize the program. 

I can sorta see the reasoning:  

You as the possessor of an arm-braced pistol did not actually manufacture them as an SBR, you manufactured them as a pistol that is now only later determined to be an SBR. Thus, you wouldn't need to engrave it as when you made it, it was not an SBR, so you had not manufactured an SBR.

Clear as mud, isn't it? Part of the confusion is they are using the normal Form 1 as part of this program rather than a specially made Form 1 for this amnesty and thus the contradiction between the form and the regulation for the arm brace amnesty program.