Wednesday, January 25, 2017

ATF 41F CLEO Notification Follies

The revised ATFE regulations regarding NFA items to be acquired by both individuals and trusts have led to some fun changes, some of which are beneficial and and some which are new headaches.

One of the changes is that CLEO notification (but no longer approval) is now required by both individuals and trusts, and notification is made by taking the copies of the appropriate Form marked helpfully enough, "CLEO Copy" and giving them to your friendly local Chief Law Enforcement Officer.

So I'm assisting a client who is now the beneficiary of an NFA trust, and a Personal Representative of a NFA owner's estate as the now deceased owner had NFA items both in his trust and in his personal name.

Think lots of Form 5s being done for nice tax free transfers to the named beneficiaries/heirs.

This should be easy enough and the clients gets the paperwork and takes the CLEO copy to her local CLEO to provide the notification as required by law. Simple enough right? Especially as, since the client is a beneficiary, the client can even get their fingerprints done at the same time the client is dropping off the CLEO notification copy, rather convenient for all concerned, and no worries as my client is as clean as the proverbial whistle.

Not so fast. The CLEO has no idea what to do with the CLEO copy of the forms, took them, looked at them and then gave them back wouldn't accept them and says that he has no idea what to do with them and says the client should take the CLEO copies to the Detroit ATFE office. Uh NO.

So we will instead go ahead and mail them to the CLEO with a copy of the latest ATFE letter on 41F so the CLEO can then do whatever the CLEO wants with the forms and the client will have proof it was sent to the CLEO.

As the ATFE require CLEO notification while stating they don't have to take any action, they shouldn't be too surprised that the CLEO is in fact taking no action at all.

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