Reply To: how to move NFA item from form 4 to 3
As you may know, the Form 4 is for transfer between entities (individuals, corps, trusts) and the Form 3 is for transfer between dealers (tax-free). The proper form is selected at time of transfer without consideration to the form used for any prior transfer. An NFA item remains in the same registry regardless of whether it is transferred on a Form 3 or 4.
A practical example of this would be a Form 4 transfer from an entity (such as an individual) to a dealer. The dealer could then use a Form 3 to transfer to another dealer. The receiving dealer could then do a Form 4 transfer to an entity or a Form 3 transfer to another dealer. This example happens regularly when an item is sold to an entity in another state.
In summary, the form is selected based on the type of transfer being performed (entity or dealer-to-dealer). You don’t ‘move an item’ from one form to another; it is simply transferred using the correct form.