# 26 U.S.C. § 5801: Imposition of tax

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s5801>. Cite pinpoints as 26 U.S.C. § 5801(a)(1).

## § 5801(a) General rule

On 1st engaging in business and thereafter on or before July 1 of each year, every importer, manufacturer, and dealer in firearms shall pay a special (occupational) tax for each place of business at the following rates:

**§ 5801(a)(1)** Importers and manufacturers: $1,000 a year or fraction thereof.

**§ 5801(a)(2)** Dealers: $500 a year or fraction thereof.

## § 5801(b) Reduced rates of tax for small importers and manufacturers

**§ 5801(b)(1) In general.** Paragraph (1) of subsection (a) shall be applied by substituting “$500” for “$1,000” with respect to any taxpayer the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000.

**§ 5801(b)(2) Controlled group rules.** All persons treated as 1 taxpayer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1).

**§ 5801(b)(3) Certain rules to apply.** For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply.

## Leading cases

- [Lauchli v. United States, 481 F.2d 408 (7th Cir. 1973)](https://www.courtlistener.com/opinion/312255/richard-a-lauchli-jr-v-united-states/)

## Connections

Cites: § 448 Limitation on use of cash method of accounting; § 5061 Method of collecting tax

Cited by: § 5851 Special (occupational) tax exemption; § 5861 Prohibited acts

## Prior provisions

- A prior section 5801, acts Aug. 16, 1954, ch. 736, 68A Stat. 721; Sept. 2, 1958, Pub. L. 85–859, title II, § 203(a), 72 Stat. 1427; June 1, 1960, Pub. L. 86–478, § 1, 74 Stat. 149, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 90–618.

## Amendments

- 1968-10-22: [Pub. L. 90-618](/26/act/90-618.md), 82 Stat. 1227
- 1987-12-22: [Pub. L. 100-203](/26/act/100-203.md), 101 Stat. 1330