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ATF 2019 Audit Inspection Violations: 1,500 Warning Letters Issued & 1,600 FFLs Surrendered or Revoked in 2019

July 28, 2020

In 2019 the ATF conducted over 13,000 compliance inspections. Over half of those inspections resulted in violations, and nearly 6% of those reports of violation resulted in a warning conference. Read more to find out what the top 10 violations were and how you can avoid them.

Title 27 CFR 478.121(b) gives the ATF the authority to enter the premises of any licensed FFL for the purpose of examining or inspecting any record or document required by or obtained under this part.

Section 922(m) of the Gun Control Act makes it unlawful for any licensed FFL knowingly to make any false entry in, to fail to make appropriate entry in, or to fail to properly maintain any such record.

“NEARLY 1,500 WARNING LETTERS ISSUED IN 2019”

Violation: Failure to complete forms as indicated in instructions (27 CFR 478.21(a))

Simply put, this means that the FFL did not fill out the form correctly or failed to verify what the buyer entered on the form.

All of the forms have instructions on them. The most common form that mistakes are made on is the 4473. The most common mistake made on the 4473 is failing to record the buyer’s information accurately, including their full name, address, license information, or exemption information.

FastBound will not allow your buyers to submit a 4473 that is not completely filled out. FastBound will also stop or warn you when you haven’t completely filled out the form, which will virtually eliminate all of the common mistakes made on the 4473.

Violation: Failure to maintain an accurate/complete/timely Acquisition and Disposition (A&D) record (27 CFR 478.125(e))

As an FFL, you are required to record all transactions accurately and in a timely fashion. The most common mistake made is not correctly recording the firearm information into your A&D record. 27 CFR 478.125(e) requires you to record the date of receipt, the name and address or the license number, Manufacturer, Importer (if any), Model, Serial, Type, and Caliber or gauge of every firearm you acquire.

FastBound will not allow you to enter an item into your A&D record without complete information. FastBound will also warn you when you enter invalid information, virtually eliminating all of the common mistakes made when entering firearm(s) into your A&D record.

Violation: Failure to report multiple sales or other dispositions of pistols and revolvers (27 CFR 478.126(a))

This means that the FFL is not filling out the Multiple Sale reports, 3310.4 & 3310.12 when required.

As an FFL you are required to report when more than one pistol or revolver is disposed to the same unlicensed person at one time or within five business days. These reports must be submitted no later than the close of business on the day that the multiple-sale occurred. You must forward one copy to the ATF and one to your state police or to the local law enforcement agency where the sale took place. You must also retain one copy and attach it to the completed 4473.

The biggest mistake made on a multiple sale form is not reporting because the FFL doesn’t understand what five business days means. The ATF definition of a business day is that you are open to conducting business using your FFL. This could be five consecutive days or five nonconsecutive days. For example, if you’re only open one day a week, then five business days would be spread across five weeks.

FastBound automatically generates multiple sale reports and fills them out when FastBound thinks they may be necessary based on your account’s activity. If there is no activity in your account on any given day, then FastBound will not count that day as a business day. This way, you don’t have to maintain, enter, or confirm the days that you are open. For example, if you transfer a firearm on Thursday to an unlicensed person. Then you are closed on Sunday. When they return on Tuesday to get another firearm, FastBound will generate multiple-sale reports. Tuesday would technically be the 5th business day because you were closed on Sunday.

This will virtually eliminate all of the mistakes made by not reporting the multiple sales.

“OVER 1,600 FFLS SURRENDERED OR REVOKED IN 2019”

Violation: The rest of the Most Frequently Cited Violations For 2019

The other most frequently cited violations in the ATF’s annual report that round up the top 10 for 2019 are related to the ones above. Using FastBound for your ATF compliance and A&D will help you stay compliant.

Failure to obtain a completed ATF F 4473 (27 CFR 478.124(c)(1))
Failure to record NICS contact information on ATF F 4473 (27 CFR 478.124 (c)(3)(iv))
Failure by transfer to sign and/or date ATF F 4473 (27 CFR 478.124 (c)(5))
Failure to verify or record purchaser’s identification document on ATF F 4473 (27 CFR 478.124(c)(3)(i))
Failure to properly record firearms information on ATF F 4473 (27 CFR 124(c)(4))
Failure to complete a NICS/POC background check (27 CFR 478.102(a))
Failure to maintain an accurate/complete/timely manufacture or acquisition record (27 CFR 478.123(a))

As you’re evaluating software, don’t forget that ATF does not validate or certify software! It’s on you, the FFL, to make sure it’s compliant.

FastBound retains FFLGuard, the #1 attorney-backed firearms compliance program in the country, to provide you with a guaranteed legal defense against ATF violations related to FastBound, resulting in administrative action. Nobody else offers this!

Since 2010, FastBound has helped thousands of FFLs, including manufacturers, retailers, distributors, importers, and pawnbrokers save time, save money, and stay on top of ATF compliance.

FastBound is easy to use, reliable, safe, and secure!
Support unmatched by our competitors.
100% covered by a legal defense against ATF
Guaranteed compliant with laws, ATF rulings

Our website fastbound.com has more details, including a list of features, some testimonials, our pricing, and a free trial with no credit card required. You can also schedule a live demo at your convenience.