What Is the ATF “Engaged in the Business” Final Rule?
In April 2024, the Attorney General signed the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Final Rule 2022R-17F, also known as the “Engaged in the Business” rule. This ATF final rule implemented the provisions of the Bipartisan Safer Communities Act, which will result in more sellers needing federal firearms license status. The rule clarifies when a person is a dealer who must be licensed, which in turn means more transfers will involve background checks conducted by licensees. Supporters say it will improve public safety by driving more checks through licensed dealers, while opponents claim it represents an unconstitutional attempt to restrict Second Amendment and Fifth Amendment rights. FastBound provides the compliance tools FFLs need to navigate these changes while protecting constitutional rights.
The rule was signed on April 10, 2024 and published in the Federal Register on April 19, 2024, becoming effective May 20, 2024. The rule clarifies when a person is “engaged in the business” as a dealer; occasional sales for a personal collection or hobby are not covered. The statutory definition focuses on repetitive purchase patterns and resale firearms activities with predominant intent to earn profit.
A preliminary injunction currently blocks enforcement against specific plaintiffs, but the rule remains effective for all other parties. The presumptions may be used in civil contexts like licensing and forfeiture; criminal cases still require proof of willfulness.
Key Changes Under the Final Rule
The ATF engaged in the business final rule creates rebuttable presumptions affecting when a single firearm transaction may trigger licensing requirements:
The rule clarifies the definition of “dealer,” and defines the terms “purchase,” “sale,” and “something of value” as they apply to dealers, covering firearm transactions regardless of location or payment method.
Defines personal collection as firearms acquired for study, exhibition, or hobby purposes, excluding firearms purchased for resale with predominant profit intent. This protects legitimate collectors while targeting commercial operations that avoid licensing requirements.
Establishes presumptions requiring licensing when individuals demonstrate willingness to:
- Source additional firearms for resale
- Make repetitive purchases within 30 days
- Sell new or like-new firearms in original packaging within one year of acquisition
These presumptions shift the burden to individuals to prove non-commercial intent.
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The rule presumes profit intent when individuals:
- Advertise firearms business
- Rent display spaces
- Maintain profit-loss records
- Secure merchant services
- Establish business entities
- Apply for state business licenses covering firearm commerce
References responsible person definitions from existing regulations, ensuring accountability for licensing compliance and recordkeeping procedures in various business contexts.
Unlicensed dealing can carry criminal penalties under 18 U.S.C. 922(a)(1)(A) and 924; separate administrative actions can deny, revoke, or not renew federal firearms license status. The Administrative Procedure Act and Congressional Review Act provide frameworks for challenging regulatory enforcement affecting lawful conduct and the right to bear arms.
Current Regulatory Status and Review
The rule took effect on May 20, 2024 for everyone except for plaintiffs covered by the preliminary injunction in Texas et al. v. ATF. Most licensed dealers and individuals must comply with the ATF engaged in the business standards while litigation continues.
On April 7, 2025, the Department of Justice (DOJ) and the ATF announced they will review Final Rule 2022R-17F. Then-Acting ATF Director Kash Patel emphasized ensuring policies remain “constitutional and protective of Americans’ Second Amendment rights.” Daniel Driscoll subsequently became Acting Director.
Compliance Requirements for Licensed Dealers
Licensed dealers must maintain comprehensive recordkeeping procedures under federal regulations. The rule affects various transaction types, from gun shows to internet commerce, requiring dealers to document all firearms acquisitions and dispositions. While this rule does not mandate universal background checks, more licensure means more background checks conducted by licensees, maintaining audit trails for law enforcement investigations.
The rule clarifies that occasional sales for personal collection enhancement or hobby purposes do not require licensing. However, repetitive purchase and resale activities with predominant profit intent trigger dealer obligations including background check requirements and recordkeeping procedures.
Licensed dealers must understand the rule’s specific requirements for documenting transactions and maintaining proper records. The rule establishes rebuttable presumptions based on timing (30-day and one-year windows), transaction patterns, and business indicators that FFLs should track carefully. Proper documentation of personal collections, business inventory, and acquisition dates becomes critical for demonstrating compliance and potentially rebutting presumptions of commercial dealing.
How FastBound Helps FFLs Navigate ATF Engaged in Business Requirements
FastBound simplifies compliance with the ATF engaged in the business rule through automated recordkeeping protecting FFLs from administrative errors. The platform supports lawful conduct while helping dealers maintain Fifth Amendment and Second Amendment protections during regulatory uncertainty.
Process electronic forms with built-in error prevention, supporting federal and state background check requirements. Digital signatures eliminate hardware needs while ensuring compliance with final rule standards for licensed dealers conducting lawful firearm transfers.
Electronic bound books prevent documentation errors that trigger violations during ATF inspections. Bulk editing capabilities allow compliant corrections preventing the serial number mistakes and recordkeeping violations that lead to administrative actions against licenses.
FastBound’s attorney-backed guaranteed legal defense provides protection during administrative proceedings and regulatory enforcement actions, offering security when statutory authority questions arise in this evolving regulatory environment.
Seamless connections with state background check systems and point-of-sale platforms streamline operations while maintaining federal compliance requirements.
FastBound’s comprehensive approach adapts to regulatory changes affecting constitutional rights, ensuring individuals and businesses engaged in lawful firearms commerce maintain proper documentation and licensing compliance during ongoing ATF engaged in the business policy reviews. For FFLs seeking comprehensive compliance solutions, start a free trial to experience FastBound’s platform.
Frequently Asked Questions
No. The rule applies regardless of venue whether you sell at gun shows, online, at your home, through auctions, or any other location. The medium doesn’t change your dealer status. It’s about your intent and pattern of activity.
No minimum threshold exists. While large numbers may indicate business activity, even a single transaction combined with other evidence like advertising willingness to source more guns can trigger licensing requirements. Courts have found one transaction sufficient if intent and other factors are present.
Yes. Liquidating inherited firearms is specifically excluded from business presumptions. The rule recognizes this as distinct from repetitive purchase and resale activities, even if you profit from the sales.
Firearms accumulated for study, comparison, exhibition, or hobby purposes like hunting, target shooting, or historical collecting. It excludes firearms purchased primarily for resale with profit intent, but genuine collectors can occasionally sell to enhance their collections.
No. Making profit doesn’t automatically mean you are engaged in business. The key is your predominant intent when acquiring the firearm. Someone who bought a gun 40 years ago and sells it for retirement income isn’t engaged in business based on that single sale.