I'm not a lawyer so take this as just my 2 cents when it comes to showing tax stamps to local law enforcement. First they would not be investigating the federal transfer or possession of the item they would be investigating the possession of the item under state law. Most people confuse the need to show the tax stamp, trust or corporation documents to only ATF for inspection when requested by a ATF agent as the only agents that are allowed to see or look at your tax stamps, trust or corporation documents.
Local law enforcement in North Carolina are investigating the criminal possession of a weapon of mass destruction (North Carolina General Statute § 14-288.8. Manufacture, assembly, possession, storage, transportation, sale, purchase, delivery, or acquisition of weapon of mass death and destruction; exceptions). In that North Carolina General Statute it states that possession of such items are illegal unless the meet one of the following exceptions; (Subsection (5) is the important paragraph that will apply to what we are talking about)
(b) This section does not apply to any of the following:
(1) Persons exempted from the provisions of G.S. 14-269 with respect to any activities lawfully engaged in while carrying out their duties.
(2) Importers, manufacturers, dealers, and collectors of firearms, ammunition, or destructive devices validly licensed under the laws of the United States or the State of North Carolina, while lawfully engaged in activities authorized under their licenses.
(3) Persons under contract with the United States, the State of North Carolina, or any agency of either government, with respect to any activities lawfully engaged in under their contracts.
(4) Inventors, designers, ordnance consultants and researchers, chemists, physicists, and other persons lawfully engaged in pursuits designed to enlarge knowledge or to facilitate the creation, development, or manufacture of weapons of mass death and destruction intended for use in a manner consistent with the laws of the United States and the State of North Carolina.
(5) Persons who lawfully possess or own a weapon as defined in subsection (c) of this section in compliance with 26 U.S.C. Chapter 53, §§ 5801-5871. Nothing in this subdivision shall limit the discretion of the sheriff in executing the paperwork required by the United States Bureau of Alcohol, Tobacco and Firearms for such person to obtain the weapon.
If a local law enforcement officer is investigating someone shooting or possessing a weapon that is defined below; (Subsection (3) is the important paragraph that will apply to what we are talking about)
(c) The term "weapon of mass death and destruction" includes:
(1) Any explosive or incendiary:
a. Bomb; or
b. Grenade; or
c. Rocket having a propellant charge of more than four ounces; or
d. Missile having an explosive or incendiary charge of more than one-quarter ounce; or
e. Mine; or
f. Device similar to any of the devices described above; or
(2) Any type of weapon (other than a shotgun or a shotgun shell of a type particularly suitable for sporting purposes) which will, or which may be readily converted to, expel a projectile by the action of an explosive or other propellant, and which has any barrel with a bore of more than one-half inch in diameter; or
(3) Any firearm capable of fully automatic fire, any shotgun with a barrel or barrels of less than 18 inches in length or an overall length of less than 26 inches, any rifle with a barrel or barrels of less than 16 inches in length or an overall length of less than 26 inches, any muffler or silencer for any firearm, whether or not such firearm is included within this definition. For the purposes of this section, rifle is defined as a weapon designed or redesigned, made or remade, and intended to be fired from the shoulder; or
(4) Any combination of parts either designed or intended for use in converting any device into any weapon described above and from which a weapon of mass death and destruction may readily be assembled.
And you are found in possession of a item defined above in subsection (3) it is prima facie that you are in violation of NCGS 14-288.8. So if you do not show proof that you meet the exception in subsection (5) above you can be arrested for possession of a weapon of mass destruction and your NFA item seized as evidence until trial. If you do not show them proof you are not violating the law how else are they going to know? If you think they can call some magic ATF number and run your name you are mistaken. More than likely you will be found not guilty but thats after paying a lawyer enough money that you could have bought another NFA item and the lawyer shows the tax stamps and other documents to the DA and Judge.
So my question is why would chance being arrested and your property being seized until trail if all you have to do is take a minute of your time and show a few documents that most local law enforcement officers will not understand (as mentioned several times above local officers don't receive a lot of training regarding NFA items). Just remember you are not being inspected for federal law compliance, you are being criminally investigated for the violation of a North Carolina State Statute which every sworn local law enforcement officer has subject matter jurisdiction. Sorry for the long lengthy post. As for me I will show my tax stamps or documents to any local or federal law enforcement officer that ask to see them.
