How is it the DOJ now has taxing authority?

[gunderwood]

When the BATFE was moved to be under DOJ, they retained their taxing authority under the NFA. Wasn't that the reason they were under the Treasury Department in the first place? Seems to me that the DOJ collecting a tax is illegal...or at least should be. Furthermore, would the same logic apply to the DOJ selling licenses?

[Jim]

Your observation and question makes sense. However(comma)the only way I know of changing that is at the polling booth.
Now, if we can just get some conscientious congressman to write a bill to that effect.....

[gunderwood]

Your observation and question makes sense. However(comma)the only way I know of changing that is at the polling booth.
Now, if we can just get some conscientious congressman to write a bill to that effect.....

I have no illusions that the law or the questions matter one bit concerning this.

[gunderwood]

According to the government org charts they split ATF and created the Alcohol and Tobacco Tax and Trade Bureau (TTB.gov). The TTB has new forms for excise taxes and such, but claims here that NFA was transferred to DOJ: http://www.ttb.gov/about/contactfile.shtml

Special Occupational Tax and Registration (SOT)

National Firearms Act (NFA) will be transferred to US Justice Department something in 2004. Watch for information forthcoming

See instructions on back of the Form. Make payments payable to TTB.

The TTB forms here (http://www.ttb.gov/forms/5000.shtml#firearms) do not have SOT or NFA listed, but the BATFE still does: http://www.atf.gov/forms/firearms/

The $200 making and transfer taxes on most NFA firearms were considered quite severe and adequate to carry out Congress’ purpose to discourage or eliminate transactions in these firearms. The $200 tax has not changed since 1934.
http://www.atf.gov/firearms/nfa/

It appears the DOJ is administrating a tax policy. Furthermore, what does that say about the NFA database? It was suppose to be just a tax registration database, not a LE database. It seems to me that now the NFA database may be accessible to LE for non-tax purposes, likely without a warrant (IIRC tax records require a warrant for LE use).

[gunderwood]

Here are the links to the forms:

Paid NFA Tax Transfer: http://www.atf.gov/forms/download/atf-f-5320-4.pdf
Clearly states it is a DOJ form.

Excise tax form: http://www.ttb.gov/forms/f56208.pdf
Clearly states TTB.

[gunderwood]

§ 6103. Confidentiality and disclosure of returns and return information
http://www.law.cornell.edu/uscode/26/us ... -000-.html

(b) Definitions
For purposes of this section—

• (4) Tax administration
  The term “tax administration”—
  • (A) means—
    • (i) the administration, management, conduct, direction, and supervision of the execution and application of the internal revenue laws or related statutes (or equivalent laws and statutes of a State) and tax conventions to which the United States is a party, and
      (ii) the development and formulation of Federal tax policy relating to existing or proposed internal revenue laws, related statutes, and tax conventions, and
    (B) includes assessment, collection, enforcement, litigation, publication, and statistical gathering functions under such laws, statutes, or conventions.

Don't think there is much question about it being tax administration too. DOJ lawyers are formulating what is and isn't NFA. The DOJ lawyers are even reviewing the actual return if there is any question about it (particularly if it is a trust). The only NFA SCOTUS ruling clearly states it is a tax policy and the BATFE still upholds that.

(h) Disclosure to certain Federal officers and employees for purposes of tax administration, etc.

• (2) Department of Justice
  In a matter involving tax administration, a return or return information shall be open to inspection by or disclosure to officers and employees of the Department of Justice (including United States attorneys) personally and directly engaged in, and solely for their use in, any proceeding before a Federal grand jury or preparation for any proceeding (or investigation which may result in such a proceeding) before a Federal grand jury or any Federal or State court, but only if—
  • (A) the taxpayer is or may be a party to the proceeding, or the proceeding arose out of, or in connection with, determining the taxpayer’s civil or criminal liability, or the collection of such civil liability in respect of any tax imposed under this title;
    (B) the treatment of an item reflected on such return is or may be related to the resolution of an issue in the proceeding or investigation; or
    (C) such return or return information relates or may relate to a transactional relationship between a person who is or may be a party to the proceeding and the taxpayer which affects, or may affect, the resolution of an issue in such proceeding or investigation.
  (3) Form of request
  In any case in which the Secretary is authorized to disclose a return or return information to the Department of Justice pursuant to the provisions of this subsection—
  • (A) if the Secretary has referred the case to the Department of Justice, or if the proceeding is authorized by subchapter B of chapter 76, the Secretary may make such disclosure on his own motion, or
    (B) if the Secretary receives a written request from the Attorney General, the Deputy Attorney General, or an Assistant Attorney General for a return of, or return information relating to, a person named in such request and setting forth the need for the disclosure, the Secretary shall disclose return or return the information so requested.

I see no exemption that would allow BATFE or the DOJ access to or any control over the NFA. INAL though.