FFL Licensing Procedures & Recordkeeping 5

Question 1

An FFL's bound book is destroyed in a fire. What must the licensee do?

Accepted Answer

Notify ATF in writing as soon as possible and report the loss

Answer

An FFL must immediately notify ATF in writing when bound books or other required records are lost or destroyed, regardless of the cause.

Question 2

What does 'straw purchase' refer to in the context of FFL transactions?

Accepted Answer

A person buying a firearm as the actual buyer but falsely claiming to be on Form 4473

Answer

A straw purchase occurs when someone who legally cannot buy a firearm uses another person to buy it on their behalf, with the actual buyer falsely identified as the transferee on Form 4473.

Question 3

How many ATF compliance inspections may occur at an FFL premises per year under normal circumstances?

Accepted Answer

One per year

Answer

Under the Firearm Owners Protection Act of 1986, ATF may only conduct one routine compliance inspection of an FFL per year, with exceptions for criminal investigations.

Question 4

When transferring a NFA item (e.g., suppressor) between two FFLs who are both SOTs, which form is used?

Accepted Answer

ATF Form 3

Answer

ATF Form 3 (Request for Tax-Exempt Transfer of Firearm and Registration to Special Occupational Taxpayer) is used for transfers of NFA items between licensed dealers who are SOTs.

Question 5

If an FFL dealer is also a Special Occupational Taxpayer (SOT), what annual tax must they pay for a Class III dealer designation?

Accepted Answer

$1,000 per year

Answer

Class III dealers (SOTs) pay an annual Special Occupational Tax of $500 for small FFLs or $1,000 for larger operations, with $500 being the standard rate for dealers with gross receipts under $500,000.

(FFL) Certified Federal Firearms License Specialist Practice Test

(FFL) Certified Federal Firearms License Specialist Practice Test

FFL Licensing Procedures & Recordkeeping 5