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Posted: 2/27/2017 2:08:21 PM EDT
This is a very clever way to ease the pains of 41f for suppressor buyers. You purchase one single-use trust per suppressor. Details here. Now if only they sold SilencerCo products... a man can dream |
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You beat me to it. I'm working on a post in our industry section. If you have any questions let me know.
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This could be handy as I would like to amend mine to remove my wife so she's not getting printed Is there still a blank trust template on the general NFA forum? |
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Curious. So, how is this better than a trust with only guy on it? I read the description. It sounds as though this trust doesn't require photos or fingerprints? That doesn't sound right, but certainly curious.
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Curious. So, how is this better than a trust with only guy on it? I read the description. It sounds as though this trust doesn't require photos or fingerprints? That doesn't sound right, but certainly curious. View Quote Once the form is approved you can add all the trustees and beneficiaries you want and ATF can't do anything about it, no fingerprints for friends or family required. |
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Curious. So, how is this better than a trust with only guy on it? I read the description. It sounds as though this trust doesn't require photos or fingerprints? That doesn't sound right, but certainly curious. View Quote I'm sure silencershop will chime in, but here is my take on it AFAIK: 1. They'll still need your fingerprints and picture. But once they get it on file you are good to go. 2. After you get approved, you can amend the trust (once?) to add your loved ones, family, and close friends, assuming they can legally own a suppressor. This saves THEM (not you) from being fingerprinted and photographed. 3. On the page, they imply that you can use these single-use trusts to legally change ownership of the suppressor, via changing ownership of the trust. This is where single-use trusts really shine. |
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Curious. So, how is this better than a trust with only guy on it? I read the description. It sounds as though this trust doesn't require photos or fingerprints? That doesn't sound right, but certainly curious. View Quote Prints and photos are still required. You do not have to notarize it. Also if you have a trust and you are the only person on it then it doesn't matter. However if you remove people from your trust and then want to add them back they are off the trust until the item is approved. So this way you have a trust for each item and the trustees can use the items that are already approved. |
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You have to do fingerprints at their kiosk once, after that, they're on file with Silencer Shop and get re-submitted with each new trust. Once the form is approved you can add all the trustees and beneficiaries you want and ATF can't do anything about it, no fingerprints for friends or family required. View Quote One slight correction. You cannot add trustees while you are pending. Only after approval. The ATF say if you add during pending then you have to contact them. |
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I'm sure silencershop will chime in, but here is my take on it AFAIK: 1. They'll still need your fingerprints and picture. But once they get it on file you are good to go. 2. After you get approved, you can amend the trust (once?) to add your loved ones, family, and close friends, assuming they can legally own a suppressor. This saves THEM (not you) from being fingerprinted and photographed. 3. On the page, they imply that you can use these single-use trusts to legally change ownership of the suppressor, via changing ownership of the trust. This is where single-use trusts really shine. View Quote BINGO on all points. |
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You have to do fingerprints at their kiosk once, after that, they're on file with silencerco and get re-submitted with each new trust. Once the form is approved you can add all the trustees and beneficiaries you want and ATF can't do anything about it, no fingerprints for friends or family required. View Quote View All Quotes View All Quotes Quoted:
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Curious. So, how is this better than a trust with only guy on it? I read the description. It sounds as though this trust doesn't require photos or fingerprints? That doesn't sound right, but certainly curious. Once the form is approved you can add all the trustees and beneficiaries you want and ATF can't do anything about it, no fingerprints for friends or family required. I kinda suspected this is how it works. How would it be any different than simply removing all the names from your trust and then submitting it with your next purchase? You can add and remove names anytime you want, right? |
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Prints and photos are still required. You do not have to notarize it. Also if you have a trust and you are the only person on it then it doesn't matter. However if you remove people from your trust and then want to add them back they are off the trust until the item is approved. So this way you have a trust for each item and the trustees can use the items that are already approved. View Quote So has the ATF blessed this method? I am probably making a purchase online this week. I may try this. I want to be able to hand my suppressor down to my kids someday when they are old enough. |
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explain the "Transfer Ownership"
Does this mean you can essentially sell the right to the ownership of the trust.... sounds like tax evasion to me. |
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Great.
Next time dems have control this will be a loophole they need to fix since it is being made so public (folks I am sure figured this out privately)- adding people after processing. As far as completely transferring "ownership" - I suspect the public nature /declaration of this is going to lead to issues quicker than the item above. There is a $200 tax on the transfer of a NFA item. Since it is your stated intentional purpose to now evade that tax and do so on a mass scale, I think this gives the ATF and gun grabbers some really good ammo to go after this process and 'loophole'. I was aware of the possibility of both. I never stated it publicly because the publicity is bad. The second one, I'd NEVER do unless there was an explicit approval from the ATF or DOJ for doing so because it sounds like tax evasion at the least. |
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So has the ATF blessed this method? I am probably making a purchase online this week. I may try this. I want to be able to hand my suppressor down to my kids someday when they are old enough. View Quote Yes, if you read 41F it says you can add people after the item is approved. But you cannot add them while waiting for approval without contacting the ATF. |
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So what if you buy two (or more) cans at once. Able to group them onto one trust? Or forced to go with multiples or the lifetime option?
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explain the "Transfer Ownership" Does this mean you can essentially sell the right to the ownership of the trust.... sounds like tax evasion to me. View Quote I've heard of people setting up individual LLCs for MG purchases. Ever want to sell? Sell the LLC and the buyer takes immediate possession |
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I've heard of people setting up individual LLCs for MG purchases. Ever want to sell? Sell the LLC and the buyer takes immediate possession View Quote Yes, but discussing this publically gives the anti-gunners ammo. Worse, now SS is talking about doing this on a MASSIVE and VERY PUBLIC scale... This will gain a ton of negative unwanted attention and will lead to further NFA restrictions on Trusts and LLCs. None of these things were invented by SS - they were just made very public. |
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Yes, but discussing this publically gives the anti-gunners ammo. Worse, now SS is talking about doing this on a MASSIVE and VERY PUBLIC scale... This will gain a ton of negative unwanted attention and will lead to further NFA restrictions on Trusts and LLCs. None of these things were invented by SS - they were just made very public. View Quote View All Quotes View All Quotes Quoted:
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I've heard of people setting up individual LLCs for MG purchases. Ever want to sell? Sell the LLC and the buyer takes immediate possession Yes, but discussing this publically gives the anti-gunners ammo. Worse, now SS is talking about doing this on a MASSIVE and VERY PUBLIC scale... This will gain a ton of negative unwanted attention and will lead to further NFA restrictions on Trusts and LLCs. None of these things were invented by SS - they were just made very public. So we should still sell and buy silencers out of a basement like it was 15 years ago to keep our little hobby secret huh? |
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So we should still sell and buy silencers out of a basement like it was 15 years ago to keep our little hobby secret huh? View Quote Sigh... no, certainly not. I just can see this leading to the next round of attacks on NFA transfers. 42F or whatnot. And I think the one tactic is likely to be Tax Evasion, and if I am not wrong about that - it's not something that should be done at all. It's something I had thought of, but would never due because of this risk. |
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Yes, but discussing this publically gives the anti-gunners ammo. Worse, now SS is talking about doing this on a MASSIVE and VERY PUBLIC scale... This will gain a ton of negative unwanted attention and will lead to further NFA restrictions on Trusts and LLCs. None of these things were invented by SS - they were just made very public. View Quote No it won't. The ATF cannot control what you do with your trust after approval. They cannot legally do shit about it. If they could, they would've done something about it in 41f. We've ALWAYS been able to amend trusts. But NOW it's gonna cause problems and/or cause an anti-gun uproar? Sorry, you're wrong. Normally I'd agree with you on """loopholes"""... but this one is straight-up legal. Black and White. |
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No it won't. The ATF cannot control what you do with your trust after approval. They cannot legally do shit about it. If they could, they would've done something about it in 41f. We've ALWAYS been able to amend trusts. But NOW it's gonna cause problems and/or cause an anti-gun uproar? Sorry, you're wrong. Normally I'd agree with you on """loopholes"""... but this one is straight-up legal. Black and White. View Quote I agree the ATF cannot prevent you from amending trusts. BUT... if it is known to be widely done to avoid the background check that occurs during the NFA paperwork process, the gungrabber media seize upon that and we could be facing new restrictions - perhaps eliminating trust ownership altogether. Secondly, and more importantly - if the intent of the trust is to evade transfer tax, and actually whole sale transferring ownership of said NFA item, avoiding the tax - that could be a criminal act. |
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I agree the ATF cannot prevent you from amending trusts. BUT... if it is known to be widely done to avoid the background check that occurs during the NFA paperwork process, the gungrabber media seize upon that and we could be facing new restrictions - perhaps eliminating trust ownership altogether. Secondly, and more importantly - if the intent of the trust is to evade transfer tax, and actually whole sale transferring ownership of said NFA item, avoiding the tax - that could be a criminal act. View Quote View All Quotes View All Quotes Quoted:
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No it won't. The ATF cannot control what you do with your trust after approval. They cannot legally do shit about it. If they could, they would've done something about it in 41f. We've ALWAYS been able to amend trusts. But NOW it's gonna cause problems and/or cause an anti-gun uproar? Sorry, you're wrong. Normally I'd agree with you on """loopholes"""... but this one is straight-up legal. Black and White. I agree the ATF cannot prevent you from amending trusts. BUT... if it is known to be widely done to avoid the background check that occurs during the NFA paperwork process, the gungrabber media seize upon that and we could be facing new restrictions - perhaps eliminating trust ownership altogether. Secondly, and more importantly - if the intent of the trust is to evade transfer tax, and actually whole sale transferring ownership of said NFA item, avoiding the tax - that could be a criminal act. How is it avoiding the transfer tax? A tax must be paid for the trust to obtain the item. Once the trust has the item it can be dealt with however any other property could be dealt with since the trust retains control of said items. |
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Yes, but discussing this publically gives the anti-gunners ammo. Worse, now SS is talking about doing this on a MASSIVE and VERY PUBLIC scale... This will gain a ton of negative unwanted attention and will lead to further NFA restrictions on Trusts and LLCs. None of these things were invented by SS - they were just made very public. View Quote I don't see it that way. The ATF already knew trusts could be amended after the fact. The more people that own suppressors and the more mainstream they become, the harder it will be for anti-gunners to come after them. It's easier for them to go after them when fewer voters own, use and are educated about them. And the easier it will be to remove them from the NFA completely and not have to worry about all this nonsense. |
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I agree the ATF cannot prevent you from amending trusts. BUT... if it is known to be widely done to avoid the background check that occurs during the NFA paperwork process, the gungrabber media seize upon that and we could be facing new restrictions - perhaps eliminating trust ownership altogether. Secondly, and more importantly - if the intent of the trust is to evade transfer tax, and actually whole sale transferring ownership of said NFA item, avoiding the tax - that could be a criminal act. View Quote That's an interesting opinion |
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Is the trust name customizable at the time of creation?
If the ability to use the kiosk for F1s ever comes to fruition, it seems like that would be a nice feature instead of using Model, SN, etc. |
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I agree the ATF cannot prevent you from amending trusts. BUT... if it is known to be widely done to avoid the background check that occurs during the NFA paperwork process, the gungrabber media seize upon that and we could be facing new restrictions - perhaps eliminating trust ownership altogether. Secondly, and more importantly - if the intent of the trust is to evade transfer tax, and actually whole sale transferring ownership of said NFA item, avoiding the tax - that could be a criminal act. That's an interesting opinion thats precisely my point, its called Tax Evasion... A dealer I know was going to do this until his lawyer advised him that he would probably serve time for it. |
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I think it will come down to intent. If your purpose and intent is structuring trusts and ownership in such a was as to purposely avoid the NFA transfer tax you could end up in hot water.
If your bona fide business (say personal protection contractor) is a S Corp and that S Corp owns MGs and you sell your business transfering MGs with it - that is likely to be viewed very differently by the DOJ / Courts. Even if ultimately not convictable, I can see indictments, and even short of indictments I can see Trust Elimination becoming the next rung in the ladder of the anti-gun agenda as a result. This is pretty tasty ammo. Your average citizen will be outraged when they hear MG transfers are not being vetted by ATF due trust manipulation schemes - the Washington Post report will slay this. For better or for worse. To take it to the extreme, imagine if a distiller named the entirety of the US Citizenship spirits tasting expert employees and charged them 40 dollars to park their cars, and gave them bottles of spirits to taste and provide feedback on thereby avoiding paying any taxes on their products. Someone would be indicted. |
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This will gain a ton of negative unwanted attention and will lead to further NFA restrictions on Trusts and LLCs. I just can see this leading to the next round of attacks on NFA transfers. we could be facing new restrictions I can see indictments, and even short of indictments I can see Trust Elimination becoming the next rung in the ladder of the anti-gun agenda as a result. Someone would be indicted. View Quote I wish I had your crystal ball. That's a lot of "I Think's" and "I forsee's". Instead of crapping on an idea on launch day why don't you let it actually play out? It doesn't affect you if you don't play. You can sit back and say "I told you so". But you have to admit- you can no more see the future than anyone else here. If you don't think that SS didn't have an entire team of lawyers run all of this down already then I forsee that you will be sorely mistaken. But what do I know, I'm just sitting over here shaking my Magic 8 ball asking it " WIll HPA Pass?" |
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thats precisely my point, its called Tax Evasion... A dealer I know was going to do this until his lawyer advised him that he would probably serve time for it. View Quote Do you have a source on that? Right now, SilencerShop (on the singleshot page) says that you legally can use a trust as a vehicle to transfer a suppressor. They undoubtedly consulted a lawyer to get that information, or have one on staff. |
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Do you have a source on that? Right now, SilencerShop (on the singleshot page) says that you legally can use a trust as a vehicle to transfer a suppressor. They undoubtedly consulted a lawyer to get that information, or have one on staff. View Quote a source on what? Tax Evasion? |
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No it won't. The ATF cannot control what you do with your trust after approval. They cannot legally do shit about it. If they could, they would've done something about it in 41f. We've ALWAYS been able to amend trusts. But NOW it's gonna cause problems and/or cause an anti-gun uproar? Sorry, you're wrong. Normally I'd agree with you on """loopholes"""... but this one is straight-up legal. Black and White. View Quote This 100%. When someone buys and LLC and there are NFA items as property of the LLC it is the same thing. You are buying the entity. |
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Is the trust name customizable at the time of creation? If the ability to use the kiosk for F1s ever comes to fruition, it seems like that would be a nice feature instead of using Model, SN, etc. View Quote Trust name for silencers will be fixed. For Form 1's it will be limited to around 20 characters. If you have an idea we are open to suggestions. However the purpose of this is to be quick and simple. Allowing people to name the trust is one more step that is required on the end user. |
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Instead of crapping on an idea on launch day why don't you let it actually play out?.... You can sit back and say "I told you so". View Quote View All Quotes View All Quotes Quoted:
Instead of crapping on an idea on launch day why don't you let it actually play out?.... You can sit back and say "I told you so". I can only do the second if I do the first, to which you object. Which is what I am doing, even if some don't like it. Saying 'I told you so' if one never did would be disingenuous. In any case, I can't stop it from playing out - so fear not - these are just my opinions distilled to writing on a internet board. They won't stop it. Quoted:
If you don't think that SS didn't have an entire team of lawyers run all of this down already then I forsee that you will be sorely mistaken. DGAF... SS and their lawyers won't go to federal prison on my behalf, nor will they do so for you or anyone else. Individuals would be the ones facing prison or indictments - they are the ones that need to be assured of the bullet proof legality of the scheme. Or as SS's lawyers put it so eloquently: "This form is not legal advice and is to be used at your own direction. Consultation with an attorney is highly recommended and this form is not a substitute for appropriate legal advice in your state. " |
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thats precisely my point, its called Tax Evasion... A dealer I know was going to do this until his lawyer advised him that he would probably serve time for it. View Quote View All Quotes View All Quotes Quoted:
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I agree the ATF cannot prevent you from amending trusts. BUT... if it is known to be widely done to avoid the background check that occurs during the NFA paperwork process, the gungrabber media seize upon that and we could be facing new restrictions - perhaps eliminating trust ownership altogether. Secondly, and more importantly - if the intent of the trust is to evade transfer tax, and actually whole sale transferring ownership of said NFA item, avoiding the tax - that could be a criminal act. That's an interesting opinion thats precisely my point, its called Tax Evasion... A dealer I know was going to do this until his lawyer advised him that he would probably serve time for it. Yes, it's tax evasion. I remember a story of a guy in FL (I think) that made a business of selling NFA items this way. Eventually he attracted the attention of law enforcement and was arrested for tax evasion. Having said that, loose lips sink ships or lead to federal charges.. Revising trustees as part of an estate or divorce is one thing; I don't see the ATF coming after a widow because her husband passed away and now she owns his NFA items. Actively selling NFA items as part of trusts and LLC's to willfully skirt the NFA tax is tax evasion. |
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Do you have a source on that? Right now, SilencerShop (on the singleshot page) says that you legally can use a trust as a vehicle to transfer a suppressor. They undoubtedly consulted a lawyer to get that information, or have one on staff. View Quote Yes this is created by a lawyer. This has been over 6 months in the making as well. Also people are getting hung up on transferring items using this trust. The purpose of the new trust is to make it easy for people to buy and make a lower cost trust. Unless someone can show something different this is the least expensive trust that we are aware of. |
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This is a little late to the party, since the HPA is going to pass in April!
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This 100%. When someone buys and LLC and there are NFA items as property of the LLC it is the same thing. You are buying the entity. View Quote The ATF freaks out over things like intent so I can see them getting butthurt if you're a business doing this but if you do this as an individual, and sell the MG years later, I don't buy it that they'd come after the buyer or seller for tax evasion |
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Yes this is created by a lawyer. This has been over 6 months in the making as well. Also people are getting hung up on transferring items using this trust. The purpose of the new trust is to make it easy for people to buy and make a lower cost trust. Unless someone can show something different this is the least expensive trust that we are aware of. View Quote |
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I'll just keep my single, $100 trust that can accomplish exactly the same thing as this. From a lawyer I trust and can have face time with, not some yokel over the internet to boot. I fail to see any value in this, unless I know for absolute certainty that I will only ever possess one NFA item. Which would be a ludicrous restriction to place on myself.
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Sigh... no, certainly not. I just can see this leading to the next round of attacks on NFA transfers. 42F or whatnot. And I think the one tactic is likely to be Tax Evasion, and if I am not wrong about that - it's not something that should be done at all. It's something I had thought of, but would never due because of this risk. View Quote Tax evasion, what are you talking about? You are still paying for the tax stamp. |
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"On the page, they imply that you can use these single-use trusts to legally change ownership of the suppressor, via changing ownership of the trust. " Here is the screen shot: http://i.imgur.com/l92Dn7w.png I believe if you use a trust to evade the NFA transfer process, you could get nipped for tax evasion. TBD, stay tuned! View Quote I missed that. Thanks. |
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"On the page, they imply that you can use these single-use trusts to legally change ownership of the suppressor, via changing ownership of the trust. " Here is the screen shot: http://i.imgur.com/l92Dn7w.png I believe if your intent is to use a trust to evade the NFA transfer process, you could get nipped for tax evasion. TBD, stay tuned! View Quote SS hasn't done anything new that you couldn't already do with a regular trust. They just made it cheaper and easier. It wasn't some big secret that nobody knew about. |
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SS hasn't done anything new that you couldn't already do with a regular trust. They just made it cheaper and easier. . View Quote True. I agree. (I take a small exception with cheaper since I can have (and do) such a trust for free). I do think with it being advertised as intended to facilitate process and tax free transfers - many folks will do so and it will lead to enforcement efforts however. I don't think it's a good idea for anyone to use a trust to avoid the NFA process unless or until there is well reasoned legal advise on the subject, or a specific endorsement from the DOJ on said practice. |
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Listening to this tax evasion angle is hilarious.
I am sure everyone claiming it properly files a use tax in their state when they buy items out of state. |
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Tax laws are all hilarious! Until you're in prison. View Quote View All Quotes View All Quotes Quoted:
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Listening to this tax evasion angle is hilarious. I am sure everyone claiming it properly files a use tax in their state when they buy items out of state. Tax laws are all hilarious! Until you're in prison. You seem to know a lot about prison. |
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