Dreamer i think kylekatern hit it. that pretty much was the argument presented to me. i thought they were out of their tree. but thanks, you broke the dam of research by showing me the right terms. here is a OCDC thread
http://forum.opencarry.org/forums/showthread.php?40635-Is-this-wallet-holster-legal& and also
http://www.atf.gov/publications/newsletters/ffl/ffl-newsletter-1997-08.pdf
WALLET GUNS
ATF has received numerous inquiries regarding
wallet guns and wallet holsters.
As defined in section 5845(e) of the National
Firearms Act (NFA), the term “any other weapon”
includes certain concealable weapons. Various
types of disguised weapons such as cane guns, belt
buckle guns, and briefcase guns (with remote
control firing mechanisms) fall within the “any
other weapon” category. It is unlawfil to make,
possess, or transfer such firearms without
complying with the provisions of the NFA.
During the 1970’s, ATF determined that various
small handguns combined with certain “wallet
holsters” fall into the “any other weapon” category
and are subject to the provisions of the NFA.
These wallet holsters are generally rectangular in
shape, are designed to disguise the appearance of
the handgun, and are designed to allow the weapon
to be fired while it is contained within the wallet.
The handgun combined with the wallet holster
constitutes an NFA firearm.
5
A conventional pistol or revolver which is
possessed without the wallet holster would not be
an NFA firearm. A wallet holster alone is not
subject to NFA controls and cannot be registered
or transferred a- a firearm. Firearms contained in
conventional holsters, trouser pockets, purses,
gun cases, or various other forms of carrying
cases have not been determined to fall within the
definition of an “any other weapon,” even though
it maybe possible to discharge a firearm while it
is carried in such a manner.
In order for an individual to lawfully “make” a
wallet gun, that is to say, acquire both the
handgun and the wallet holster, the person must
first submit an Application to Make and Register
a Firearm (ATF Form 1), pay a $200.00 making
tmq and receive approval of the application. The
serial number appearing on the handgun should
be used to register the firearm. Transfer of a
wallet gun requires an approved transfer
application and payment of a $5 transfer tax. A
transfer will not be approved unless the wallet
gun has been registered to the transferor.
Mere sale or possession of the wallet holster
without the handgun is not a violation of the
NFA. However, 18 U.S.C. section 2 provides that
a person who aids or abets another person in the
commission of an offense is also responsible for
the offense. Therefore, sale or distribution of a
wallet holster with knowledge that it will be used
to make an unregistered NFA firearm may also
place the seller or distributor of the holster in
violation of the NFA.