Revenue Procedure 58-8

       On and after July 1, 1958, only a natural person lawfully
     possessing a firearm which was duly registered, made,
     transferred, or imported by or to such person in accordance
     with the applicable provisions of the Internal Revenue Code,
     may transform such firearms into a deactivated war trophy.
       Revenue Ruling 55-590, C.B. 1955-2, 483, and Revenue Ruling
     57-227, C.B. 1957-1, 433, modified.

     SECTION 1.  PURPOSE.

     The purpose of this Revenue Procedure is to announce the
termination of the war trophy firearms deactivation program
conducted in connection with the administration of the National
Firearms Act, and to specify necessary changes in the policy and
procedure applicable to the firearms program.

     SEC. 2 POLICY AND PROCEDURE.

     .01 On and after July 1, 1958, only a natural person lawfully
possessing a firearm which, prior to such date, was duly (1)
registered, as provided by section 5841 of the Internal Revenue
Code of 1954; (2) made, in accordance with the provisions of
section 5821 of the Code; (3) transferred, in accordance with the
provisions of sections 5812 or 5814(a) of the Code; or (4)
imported, in accordance with the provisions of section 5845 of the
Code, by or to such person, may, upon written request addressed to
the appropriate Assistant Regional Commissioner, Alcohol and
Tobacco Tax, transform such firearm into a deactivated war trophy
(DEWAT) by steel welding, as distinguished from brazing or any
other method, the chamber of the firearm shut and welding the
barrel solidly to the frame or receiver.  The firearm must be
deactivated under the supervision of an Alcohol and Tobacco Tax
investigator who will certify as to its deactivated condition. 
Also, the costs of deactivation must be assumed by the owner. 
After deactivation of a firearm has been completed, the
investigator will endorse the appropriate Form 1 (Firearms),
Application for Registration of a Firearm; Form 1A (Firearms),
Declaration of Intent to Make a Firearm; Form 4 (Firearms),
Application and Order for Transfer of a Firearm; Form 5 (Firearms),
Notice of Tax-exempt Domestic Transfer of Firearm; or Form 6
(Firearms), Application for Importation of Firearms, as the case
may be, which is held by the owner.  Such endorsement shall read as
follows:

     Removed from the Classification of a firearm by steel welding
     in the prescribed manner on _______________
                                  (date)
     Investigator, Alcohol and Tobacco Tax _________________
                                             (signed)

     .02 Since such a deactivated War Trophy (DEWAT) falls in the
category of harmless ordnance curio, rather than a "unserviceable"
firearm, as contemplated by section 5812(a)(3) of the Code,
notification of subsequent transfers of "DEWATs" need not be given.

     .03 Any unregistered firearm coming within the purview of the
National Firearms Act (Chapter 53 of the Internal Revenue Code)
will be considered a contraband article subject to forfeiture to
the United States under section 5862 of the Code.

     SEC. 3 EFFECTIVE ON OTHER DOCUMENTS.

     Revenue Ruling 55-590, C.B. 1955-2, 483, and Revenue Ruling
57-227, C.B. 1957-1, 433, are hereby modified to the extent that
they are inconsistent with the procedure described above as to
firearms deactivated on or after July 1, 1958.

     SEC. 4 EFFECTIVE DATE.

     This Revenue Procedure is effective July 1, 1958.