Internal Revenue Service TaxLinks.com sm Rev. Rul. 54-98 1954-1 C.B. 264 IRS Headnote The tax imposed by section 3407 of the Internal Revenue Code attaches to the sale of complete firearms, or firearms in a knockdown condition but complete as to all component parts. The tax does not apply to the sale of parts or accessories for firearms when sold separately or when sold with a complete firearm for use as spare parts or accessories. Full Text Rev. Rul. 54-98 Advice is requested whether the tax on firearms imposed under section 3407 of the Internal Revenue Code is applicable to sales by a manufacturer of telescopic mounts, rubber recoil pads, rifle sights, and repair parts for rifles and shotguns. Section 3407 of the Code imposes a tax of 11 percent on the sale by the manufacturer, producer, or importer of firearms, shells, and cartridges. The tax attaches only to sales of complete firearms, or to firearms which, although in a knockdown condition, are complete as to all component parts. (See. 316.4 of Regulations 46.) Parts or accessories of firearms are not taxable when sold separately, or when sold with a complete firearm for use as spare parts or accessories. Accordingly, telescopic mounts, rubber recoil pads, rifle sights, and similar parts for rifles and shotguns are not taxable when sold separately, or when sold with complete firearms for use as spare parts or accessories. As to component parts of shells and cartridges see S.T. 561, C.B. XI-2, 483.
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