Every Federal Firearms Licensee (FFL) is subject to the laws and regulations set by the Code of Federal Regulations and the United States Code as well as the Rulings issued by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). An FFL who does not remain in compliance with ATF policies might be subject to fines, FFL revocation, or even criminal charges.
ATF Compliance Inspections
Industry Operations Investigators (IOIs) with the ATF conduct regular, unannounced inspections of FFLs at their businesses during their set business hours. These are used to make sure an FFL is following federal, state, and local regulations. In 2024, the ATF conducted over nine thousand of these compliance inspections, which resulted in over a thousand violation reports.
How FFLs Can Prepare Year-Round for an ATF Inspection
FFLs can minimize inspection risks by maintaining consistent, organized compliance practices all year. The ATF closely examines record-keeping, background checks, and adherence to federal regulations during inspections. Here’s how FFLs can stay inspection-ready:
Record-keeping & Reporting
Keep your Acquisition & Disposition (A&D) records up to date and accurate. Ensure every firearm received or transferred is logged promptly, with all required details such as serial number, manufacturer, importer (if any), model, caliber or gauge, type, acquired from and disposed to information in the exact format prescribed by regulations. Regularly audit your Bound Book for errors and maintain all ATF Forms 4473 records and other ATF forms as required by federal law and in the prescribed filing method.
Background Checks
In many states, the FBI conducts background checks for all firearms transactions processed by an FFL through the National Instant Criminal Background Check System (NICS). However, a select group of states are Point of Contact (POC) states, where a state or local law enforcement authority conducts background checks. POC states include:
- California
- Colorado
- Connecticut
- Florida
- Hawaii
- Illinois
- Nevada
- New Jersey
- New York
- Oregon
- Pennsylvania
- Tennessee
- Utah
- Virginia
- Washington
Four states are Partial Point of Contact states, which use state programs for certain types of firearms and federal programs for others. These states include:
Maryland
Uses state law enforcement for handguns and assault weapons, uses federal for long guns and pawn redemptions
Nebraska
Requires permit for handgun purchases, uses federal law enforcement for long guns
Wisconsin
Uses state law enforcement for handguns and federal for long guns
New Hampshire
Uses state law enforcement for handguns and federal for long guns
Since a transaction is limited by the firearm type and the buyer’s residency, it is critical for FFLs to stay up to date on transfer standards.
Professional Legal Services
A firearms compliance attorney can help FFLs navigate ATF compliance, both during times of legal stress and in everyday operations. Many of our industry experts at FFLGuard are former ATF experts themselves and can help conduct mock inspections, review your policies, create entire compliance programs, provide standard operating procedures and best practices, and offer unparalleled legal guidance if violations are discovered, an ATF warning letter, an ATF warning conference, or notice of revocation is issued.
How FFLGuard Helps FFLs Prioritize Compliance
Through its one-of-a-kind cooperative firearms compliance program, FFLGuard has offered FFLs legal protection and expert guidance for ATF compliance throughout the United States since 2008. Our service plans help firearms businesses navigate the complex regulatory landscape with ease, offering site audits, educational resources, and many more services designed specifically for FFLs. With FFLGuard as your partner, you gain valuable regulatory guidance so you can focus on growing your firearms business while we help keep your legal compliance strong, up to date, and low-risk.
FAQs
The ATF can inspect an FFL without a traditional search warrant, but only under specific conditions outlined by federal law. Under the Gun Control Act, the ATF is authorized to conduct one warrantless compliance inspection per year during business hours to ensure FFL holders are following regulations. These routine inspections are not criminal investigations, but if there’s probable cause to believe a crime has occurred, ATF IOIs will notify ATF’s law enforcement branch, and ATF agents will and are required to obtain a search warrant like any other criminal investigation.
Most ATF violations are a result of regulated document errors, failure to follow recordkeeping procedures, and lapses in security protocols. Some of the most frequently cited include:
- Failure to record firearm acquisition or disposition in the A&D (Acquisition and Disposition) book
- Failure to record firearm acquisition or disposition in the required time limit
- Incomplete or incorrect ATF Form 4473 documentation
- Not conducting a background check or improperly completing the NICS / background check process
- Failure to report multiple sales of handguns
- Missing or incorrect serial numbers during inventory checks
- Failure to maintain proper firearm storage and security measures
Even though virtually all of these violations are the result of poor procedures, even one violation of magnitude can result in fines, license revocation, or other penalties.
A “willful violation” occurs when an FFL holder knowingly and intentionally violates federal firearm laws or regulations or continues noncompliant behavior after being warned or educated by the ATF. Willful violations go beyond simple mistakes—they demonstrate a disregard for legal obligations. Examples include knowingly selling a firearm to a prohibited person, intentionally failing to conduct background checks, or falsifying records. Additionally, failure to correct and/or prevent violations previously cited is often considered willful. The ATF uses a combination of documentation, prior warnings, current administration guidance, and behavior patterns to determine the consequences of these actions.