Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 55-33

1955-1 C.B. 128

IRS Headnote

Liability to special (occupational) tax imposed under section 5801 of the Internal Revenue Code of 1954 would not be incurred by a licensed dealer under the Federal Firearms Act for transmitting orders for firearms to a bona fide manufacturer of firearms.

Full Text

Rev. Rul. 55-33

Advice has been requested whether firearms dealers licensed under the Federal Firearms Act must pay special (occupational) tax under section 5801 of the Internal Revenue Code of 1954 if they receive a commission for referring orders for firearms to manufacturers.

In the instant case, the dealer has no active part in the sales transaction other than the referral of the sale to the manufacturer for which he receives a commission.

A licensed dealer under the Federal Firearms Act would not incur liability to the special (occupational) tax imposed under section 5801 of the Internal Revenue Code of 1954 for transmitting an order for a firearm to a bona fide manufacturer of firearms, notwithstanding the fact such dealer receives a commission for the service rendered. A person acting in this capacity would be considered as an `agent' or `finder' and the function he performs may be conducted under the special (occupational) tax stamp issued to the manufacturer to whom the sale is referred