Special Occupation Tax

SOT stands for Special Occupational Tax, and is required in order to become involved in the selling or transferring of NFA items (like suppressors). Special Occupational Taxpayers are a group of Federal Firearm Licensees in the United States who manufacture, import and/or transfer NFA weapons.

In addition to the firearms industry, the tobacco industry is also subject to paying special (occupational) taxes, and are therefore SOTs. Specifically, manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and tobacco export warehouse proprietors are subject to tax. If you are already licensed: There is a Special Occupational Tax (SOT) that must be paid, a form that must be filled out and a SOT Stamp that must be in your possession (See Title 26 U.S.C., Chapter 53, Internal Revenue Code §5801 (a)(2). Understanding this could save your business money, time and aggravation.

          • Class 1, Usage: importer of NFA firearms
          • Class 2, Usage: manufacturer of NFA firearms
          • Class 3, Usage: dealer of NFA firearms

To get a Class 1 SOT status, an importer FFL is needed, which are FFL Types 8 and 11.

To get a Class 2 SOT status, a manufacturer FFL is needed, which are FFL Types 7 and 10.

To get a Class 3 SOT status, a dealer FFL is needed which are FFL Types 1 and 2.

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