2. NFA Items That Qualify for $0 Tax in 2026

The following NFA items drop to $0 tax:

– Suppressors

– Short-Barreled Rifles (SBR)

– Short-Barreled Shotguns (SBS)

– Any Other Weapon (AOW)

3. What Still Requires the $200 Tax Stamp

Two categories still require the traditional $200 NFA tax:

– Machineguns

– Destructive Devices (DDs)

4. New ATF Forms Required January 1, 2026

The tax may be gone, but the paperwork remains—and it’s changing. FFLs should expect revised ATF Form 1, FATF Form 4, and ATF Form 5 with tax-payment sections removed.

5. All Other NFA Requirements Still Apply

Every step of the NFA compliance process remains intact:

– Fingerprints

– Passport-style photos

– Background checks

– State law restrictions

– Registration of the firearm

– Retention of paperwork

6. Expect Longer Processing Times

Thousands of buyers are delaying NFA purchases until the tax drops. This means application volumes will spike, processing delays are likely, and approval times may extend significantly. (See current ATF NFA form processing times)

7. Legal Challenges and Industry Uncertainty

Several lawsuits have surfaced challenging the constitutionality of continuing NFA regulation without a tax. Depending on court outcomes, future changes to form requirements or registration obligations are possible. 

One of the most prominent NFA lawsuits is Silencer Shop Foundation v. ATF.  Google summarized the lawsuit well in this overview: 

“Core Legal Theory: The lawsuit, filed on July 4, 2025, argues that the NFA was originally upheld as a valid exercise of Congress’s taxing power. With the passage of the “One Big Beautiful Bill Act” (H.R.1 2025), which eliminated the $200 tax on the manufacture and transfer of most NFA items, the legal basis for the registration and transfer requirements has been dissolved.

Plaintiffs: The Silencer Shop Foundation is leading the lawsuit, joined by various industry partners and Second Amendment advocacy groups including the Gun Owners of America (GOA), Palmetto State Armory, SilencerCo, and the Firearms Regulatory Accountability Coalition. Over 15 states have also joined in support of the plaintiffs.

Defendants’ Stance: The Department of Justice (DOJ) and the ATF filed a cross-motion for summary judgment in November 2025, defending the NFA. They argue that the regulations are still valid under the Commerce Clause and that the items in question (suppressors, SBRs, etc.) do not fall under the Second Amendment’s protection as they are not “typically possessed by law-abiding citizens for lawful purposes”.

Current Status (as of December 9, 2025): The case is currently ongoing in the U.S. District Court for the Northern District of Texas, San Angelo Division (Case No. 6:25-cv-00056-H). Both sides have filed motions for summary judgment, and the case is progressing through the legal system.

The outcome could drastically change the landscape of firearms regulation in the U.S., potentially removing suppressors, short-barreled rifles/shotguns, and Any Other Weapons (AOWs) from NFA control entirely if the plaintiffs are successful.” (Learn more – https://ssf.org/)

8. How FFLs Should Prepare for 2026

Dealers should take the following steps:

– Stock inventory strategically

– Train staff on updated NFA forms

– Prepare customers for delays

– Ensure eForms and fingerprint systems are current

9. How Orchid Helps FFLs Stay Compliant

Orchid provides:

– NFA-ready Orchid eBound

– Orchid eState for state restrictions

– Orchid POS & eCommerce for suppressor and SBR sales

– Full ATF compliance support

Orchid has helped thousands of FFLs navigate regulatory change for nearly 15 years, including during the transition to the $0 NFA tax era.