CHANGES IN DEPOSIT RULES AND
REVISION OF ATF FORM 5300.27
All Firearms and Ammunition Excise Taxpayers and Others Con-
Purpose. This industry circular highlights changes in the de-
posit law and regulations. Also, this circular announces a new
edition (7-95) of ATF Form 5300.27, Federal Firearms and Ammu-
nition Excise Tax Deposit.
Deposit Rules. New regulations (T.D. ATF-365) will be effec-
tive on July 1, 1995. The new regulations simplify the rules
for who must make deposits and when and how much excise tax
should be deposited. The new edition of ATF Form 5300.27,
which is included with this circular, has incorporated these
Exemptions from Making Deposits. Before July 1, 1995, only
persons who had an unpaid tax liability of $100 or less during
a calendar quarter were exempt from making deposits of tax.
All other persons were required to make monthly or semimonthly
deposits of tax, or if ATF required, to file monthly or semi-
The new regulations will require that persons make semimonthly
deposits with the following exemptions. A person whose tax
liability does not exceed $2,000 in a calendar quarter and does
not elect to use the look-back quarter rule (see instruction 4b
of ATF Form 5300.27) will be exempt from making deposits. The
new regulations also provide a deposit exemption to persons who
do not engage in any trade or business covered by the tax re-
turn and file one-time or occasional firearms and ammunition
excise tax returns (ATF Form 5300.26). In addition, a person
who ATF requires to file semimonthly returns will be exempt
from making deposits.
Determining the Amount to Deposit. The new regulations sim-
plify the rules governing the amount of each tax deposit. Tax-
payers will use one of three rules: the general rule (100 per-
cent); a look-back quarter rule; and first-time filer rule.
The use of these deposit rules are explained in instruction 4
of the new edition (7-95) of ATF Form 5300.27. Use these rules
for the deposits made for the calendar quarter beginning July
1995 and subsequent quarters. Disregard the tax deposit rules
stated in instruction 23 on ATF Form 5300.26, Federal Firearms
and Ammunition Excise Tax Return.
Deposit Periods and Due Dates. Semimonthly periods are the first
15 days of each calendar month and the 16th through the last day
of each calendar month. Under the new rules, deposit periods are
semimonthly periods with one exception. Recent legislation
(Section 712 of P.L. 103-465, Uruguay Round Agreement Act) split
the semimonthly period of September 16 through 30 into two
deposit periods. The first deposit period is September 16
through 25, for which a deposit will be due no later than
September 28. The second deposit period is September 26 through
30, for which a deposit will be due no later than October 9.
Deposits for the semimonthly periods will still be due no later
than nine days after the end of the semimonthly period. When a
due date for a deposit occurs on a Saturday, Sunday or legal
holiday, the deposit due date changes. Refer to the instructions
on ATF Form 5300.27.
New Edition (7-95) of ATF Form 5300.27. Begin using the 7-95
edition of ATF Form 5300.27 for your first deposit for the
calendar quarter of July through September 1995. You may
photocopy this form or order additional copies from the ATF
Distribution Center, P.O. Box 5950, Springfield, VA 22153
(Telephone 703-455-7801). Please discard any remaining copies of
the previous edition (10-90) of ATF Form 5300.27 after you have
made your last deposit for the calendar quarter of April through
Questions. Direct questions concerning this circular to an
office listed in the instructions on ATF Form 5300.27, or to the
Tax Compliance Branch, Bureau of Alcohol, Tobacco and Firearms,
Room 5190, Washington, DC 20226.