The NFA imposes a tax on the making and transfer of firearms defined by the Act, as well as a special (occupational) tax on persons and entities engaged in the business of importing, manufacturing, and dealing in NFA firearms. All transfers of ownership of registered NFA firearms must be done through the federal NFA registry. The NFA also requires that transport of NFA firearms across state lines by the owner be reported to the ATF.
The NFA was enacted to regulate “gangster weapons” such as machine guns and hand grenades, as well as shotguns and rifles with barrels less than 18 inches. Cognizant of the fact that firearms could not be banned under the Second Amendment, U.S. Attorney General Homer S. Cummings proposed harsh regulations to curb the use of such weapons. Originally, pistols and revolvers were to be regulated as strictly as machine guns. As a result, cutting down a rifle or shotgun to get around the handgun restrictions by making it a concealable weapon did not circumvent the act: it was still taxed as strictly as a machine gun. Ultimately, conventional pistols and revolvers were excluded from the Act, but other concealable firearms were not.
Under the original Act, NFA “firearms” were machine guns, short-barreled rifles (SBR), short-barreled shotguns (SBS), any other weapons (AOW or concealable weapons other than pistol or revolver) and silencers for any type of firearm. The minimum barrel length was soon amended to 16 inches for rimfire rifles, and by 1960, it had been amended to 16 inches for centerfire rifles as well. Several SBRs, Winchester and Marlin”trapper” rifles made before 1934 with 14 or 15 inch barrels, have been removed from the NFA (Title II).
Initially, all persons were required to register currently possessed but unregistered firearms. The Treasury Department could then supply this information to the State authorities, who could then use this information to prosecute the person for illegal possession of a firearm as per state law. The Supreme Court ruled in the Haynes case in 1968 that a person prosecuted for possessing an unregistered NFA firearm had a valid defense to the prosecution: the registration requirement imposed on the possessor of an unregistered firearm violated the possessor’s privilege from self-incrimination under the Fifth Amendment of the U.S. Constitution. The Haynes decision made the 1934 Act virtually unenforceable.
NFA categories have been and will continue to be modified by laws passed by Congress, rulings by theDepartment of Treasury, and regulations promulgated by the enforcement agency assigned to firearms known as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE).



