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what is a form 3, 4? explanations....
Though it is common terminology to say so, no machinegun/suppressor/SBS/SBR/AOW is "on" a form. the registered owner, has posession of the item because it has been transferred to them using a particular ATF form.
Sellers of an item usually state either it is on form 3 so the potential buyer knows the transfer will be both tax free to the in-state dealer, and less time consuming, generally.
If it would transfer tax paid on form 4, to the in-state dealer, either buyer or seller depending on the sales agreement, is responsible for that tax, and that transfer can take a bit longer than a form 3, sometimes.
most commonly, an individual buys a MG from a dealer, and it transfers with form 4. when a dealer receives a item from an individual, it transfers on form 4. when a dealer receives an item from another dealer or manufacturer, it transfers on form 3. the form 3 allows transfer tax free, and is only between those dealers/mfg's who have paid the annual SOT (Special Occupational Tax).
buyer A, in Texas, buys a mg from seller B, in Nevada. seller was a FFL/SOT at one time, but out of business. the mg transfers to the Texas dealer on form 4, A & B have to decide who pays that transfer tax. the mg then transfers to A, in Texas, with a 2nd $200 tax,on form 4.
buyer A, in Ohio, lucks out & buys a Mg from C, in Ohio. C fills out the form 4, A & C decide who actually pays the tax, check for $200 goes with the form 4's & when approved, A picks up the MG from C.
ETA, "in-state" refers to the state the buyer lives in.
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