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When the ATF Couldn’t Shut Them Down – They Brought in the IRS

When the ATF Couldn’t Shut Them Down They Brought in the IRS
Image Credit: Tom Grieve / Rare Breed Triggers

In a disturbing case that blends government overreach, legal battles, and the weaponization of bureaucratic power, Rare Breed Triggers found itself on the receiving end of an aggressive assault by federal agencies. What began with a cease-and-desist order from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) quickly escalated into a multi-pronged attack involving not only the ATF but also the Internal Revenue Service (IRS) and the banking sector. 

The case of Rare Breed Triggers is a reminder of how government agencies can potentially misuse their power to target individuals and businesses they disapprove of. In this article, we’ll examine the journey of Rare Breed Triggers, the challenges they faced, and the tactics employed by the government to shut them down.

The Origins of the Conflict

The Origins of the Conflict
Image Credit: Rare Breed Triggers

It all started in December 2020 when Rare Breed Triggers, led by Lawrence DeMonico, released their first generation of force-reset triggers (FRTs) to the market. These devices were marketed as legal, semi-automatic parts designed for AR-15-style rifles. However, in July 2021, Rare Breed Triggers received a cease-and-desist letter from the ATF, accusing them of manufacturing machine guns. 

This accusation puzzled DeMonico, as his company had been operating for six months without any legal pushback before the letter arrived. As DeMonico told attorney Tom Grieve in a candid interview, “If you really thought we were selling machine guns, somebody should have been knocking on my door 24 hours after they figured it out.” Despite the ATF’s cease-and-desist order, Rare Breed Triggers continued its operations and put out a video publicly defying the government’s claims, signaling their intent to fight back.

The Raid: A Stark Escalation

The Raid A Stark Escalation
Image Credit: Tom Grieve

The ATF’s response was swift and violent. Instead of engaging in a simple conversation to resolve the issue, they took matters into their own hands by raiding Rare Breed Triggers’ contract manufacturer. Armed agents raided the facility at gunpoint, seizing computers, records, and halting production. 

Lawrence DeMonico recounts the raid in the interview, describing how the ATF “kicked in their doors, guns up” and disrupted the operations. Yet, remarkably, the government’s actions did not stop Rare Breed Triggers from continuing business. As DeMonico put it, “They let us sell for 6 months, and then they come after us.” This seemingly lackadaisical approach left many questioning the intent and integrity of the ATF’s actions.

Legal Battles Begin

Legal Battles Begin
Image Credit: Tom Grieve

After the ATF raided their manufacturer, Rare Breed Triggers filed a lawsuit in the Middle District of Florida seeking a declaratory judgment, asking the court to determine whether their FRTs were indeed machine guns. The company’s goal was simple: to get clarity on the legality of their products and avoid facing criminal charges. But things didn’t go as smoothly as they had hoped. 

Tom Grieve, who represented Rare Breed Triggers in the litigation, pointed out how the legal process was stacked against them. Grieve explained that the court was heavily inclined to defer to the ATF’s interpretation of the law under the Chevron Doctrine, which gave agencies significant leeway in interpreting laws. In effect, this meant the court would prioritize the ATF’s stance on whether FRTs were machine guns, regardless of the evidence.

Procedural Issues

Procedural Issues
Image Credit: Survival World

While the case was initially moving in Rare Breed’s favor, the sudden illness of the attorney handling the case led to the dismissal of the suit. As DeMonico recalled, the case was thrown out for what seemed like procedural issues rather than a fair evaluation of the evidence. Rare Breed Triggers was forced to regroup, relocating their operations to North Dakota in the hope of finding more favorable legal ground.

The IRS Joins the Fight

The IRS Joins the Fight
Image Credit: Survival World

Just as Rare Breed Triggers was adjusting to a new location, the government came at them from yet another angle – the IRS. DeMonico spoke about how, just when things seemed to calm down, the company was suddenly subjected to an audit. While audits are routine for businesses, the timing of this investigation was highly suspicious, coming right after the ATF’s failed attempt to shut down the company. Grieve commented on the strategy, saying, “They’re playing games with the IRS as well. It’s all about wearing you down.”

Exhausting Resources

Exhausting Resources
Image Credit: Tom Grieve

The IRS audit served as a strategic weapon, piling pressure on Rare Breed Triggers. Audits are not only time-consuming but also costly, requiring significant resources to navigate. This tactic, along with the previous raid and the legal battles, took a serious toll on the company. As DeMonico reflected, the process was designed to exhaust resources and force the company into submission, saying, “It’s all about time and money. They want you to give up.”

The Financial Warfare

The Financial Warfare
Image Credit: Survival World

One of the most insidious aspects of the government’s attack on Rare Breed Triggers was their attempts to cut off the company’s access to banking services. DeMonico revealed that Rare Breed Triggers was “debanked” by two separate financial institutions within 30 minutes of each other. He explained, “My private banker… said we have to let you go. This decision is unappealable.” The timing of these actions raised concerns about possible coordination between the government and financial institutions, especially given the broader context of Operation Chokepoint. This operation was a covert initiative designed to limit access to banking services for industries considered “high-risk,” including firearms-related businesses.

DeMonico’s personal experience with being debanked is a vivid example of the financial warfare waged against him. He recalled how difficult it was to find a bank willing to work with Rare Breed Triggers. The company faced a major financial setback, unable to conduct business without access to basic banking services. Grieve remarked that the entire strategy was aimed at “robbing” the company of its ability to function, saying, “They want to bankrupt you before you even have a chance to fight.”

A Perilous Road to Settlement

A Perilous Road to Settlement
Image Credit: Survival World

Despite the heavy pressure from the ATF, IRS, and banks, Rare Breed Triggers refused to back down. They continued to fight the allegations in court, leading to a settlement agreement that provided some relief. As part of the settlement, the ATF was required to honor the final ruling by Judge Reed O’Connor, which had vacated the ATF’s determination that FRTs were machine guns. This was a significant legal victory for Rare Breed, as it provided clarity on the status of their products and ensured that they could continue selling them.

However, as DeMonico explained, the legal battles were far from over. Rare Breed’s legal troubles were far from finished, with multiple lawsuits and legal hurdles still on the horizon. Despite the settlement, the company faced ongoing threats, including new lawsuits from several states and attempts by federal agencies to block their ability to operate. “Even if we don’t beat you in court,” one of the prosecutors allegedly told DeMonico, “we’ll bankrupt you in the process.”

The Weaponization of Government

The Weaponization of Government
Image Credit: Survival World

The Rare Breed Triggers case is an example of how the government can weaponize its agencies against individuals and businesses it disapproves of. DeMonico, Grieve, and Bellamy all emphasized that the government’s actions were not just about enforcing the law but were part of a broader strategy to suppress certain industries. As DeMonico put it, “They can lose in court but still win by bankrupting you.” The weaponization of the legal and financial systems made it clear that the government was willing to go to extreme lengths to undermine Rare Breed Triggers, regardless of the law.

A Shocking Conclusion

A Shocking Conclusion
Image Credit: Rare Breed Triggers

In the end, Rare Breed Triggers was able to secure a settlement and avoid the worst-case scenario, but not without paying a heavy price. The company had to navigate a complex web of legal, financial, and logistical challenges, all designed to wear them down. The government’s tactics, from legal maneuvers to IRS audits to banking interference, left Rare Breed with little choice but to fight back with everything they had.

The case of Rare Breed Triggers is a cautionary tale for anyone in the firearms industry, illustrating the lengths to which the government can go to crush a business it disapproves of. It also raises important questions about the fairness of our legal and financial systems, especially when it comes to protecting the rights of individuals and businesses in the face of government overreach.

As DeMonico stated, “The government was willing to lie, cheat, steal, break the rules, and do whatever they needed to get the job done.” For now, Rare Breed Triggers has survived, but the battle for their rights is far from over.

UP NEXT: “Heavily Armed” — See Which States Are The Most Strapped

Americas Most Gun States

Image Credit: Survival World


Americans have long debated the role of firearms, but one thing is sure — some states are far more armed than others.

See where your state ranks in this new report on firearm ownership across the U.S.


The article When the ATF Couldn’t Shut Them Down – They Brought in the IRS first appeared on Survival World.

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