Federal Firearms and Ammunition Excise Tax Law and Legal Definition

Firearms and Ammunition Excise Tax (FAET) is a federal tax imposed on the sale of firearms and ammunition by manufacturers, producers, and importers. This tax was created for the first time in 1919 pursuant to the provisions of Chapter 32 of the Internal Revenue Code.

Different federal agencies have been responsible for overseeing the collection of FAET. From 1919 to 1990, the Internal Revenue Service (IRS) was responsible for collecting FAET. On January 1, 1991, this function was transferred from the IRS to the Bureau of Alcohol, Tobacco and Firearms (ATF).