Straw Purchases: What Every FFL Needs to Know to Protect Their License

What Is a Straw Purchase?

A straw purchase occurs when one person buys a firearm on behalf of another person — the actual intended recipient. The person completing the Form 4473 is not the true buyer; they're a proxy. This is a federal felony under 18 U.S.C. § 922(a)(6), punishable by up to 15 years in prison under the Bipartisan Safer Communities Act (BSCA) penalties enacted in 2022.

The law is clear: the person who fills out the 4473 must be the actual transferee/buyer. If someone else is providing the money, directing the purchase, or will ultimately receive the firearm, the transaction is a straw purchase — regardless of whether the intended recipient is legally eligible to buy a firearm themselves.

Question 21.a: The Anti-Straw-Purchase Question

Question 21.a on the ATF Form 4473 asks: "Are you the actual transferee/buyer of the firearm(s) listed on this form?"

The answer must be "Yes." If the buyer answers "No," the transaction stops. If they answer "Yes" but are actually purchasing on behalf of someone else, they've committed a federal crime.

What "Actual Transferee/Buyer" Means

The ATF defines the actual transferee/buyer as the person who is purchasing the firearm for themselves. The buyer is using their own money (or acquiring it through legitimate means), making their own decision about which firearm to buy, and intending to keep the firearm or give it as a legitimate gift.

The Gift Exception

A bona fide gift is not a straw purchase. If you walk into a gun store, choose a firearm, pay for it with your own money, and give it as a gift — with no arrangement, reimbursement, or expectation of payment from the recipient — you are the actual buyer. You answer "Yes" to 21.a.

The distinction is intent and payment:

• Legal gift: "I want to buy my dad a shotgun for his birthday." You choose it, you pay for it, you give it freely. → Not a straw purchase.
• Straw purchase: "My dad gave me $600 and asked me to go buy him a specific Glock." Dad is directing the purchase and providing the money. → Straw purchase, even if dad is legally eligible.

BSCA Changes: Questions 21.b and 21.n

The Bipartisan Safer Communities Act (2022) added two new questions to the 4473 that strengthen straw purchase enforcement:

Question 21.b

"Are you acquiring the firearm(s) on behalf of or at the request of any other person who you know or have reasonable cause to believe is a person described in questions 21.c through 21.m?"

Translation: Are you buying this for someone who is a prohibited person? The answer must be "No" for the transaction to proceed. This question targets the scenario where the straw buyer knows the intended recipient can't pass a background check.

Question 21.n

"Do you intend to sell or otherwise dispose of the firearm(s) in furtherance of a felony, an act of terrorism, or a drug trafficking crime?"

The answer must be "No." This question targets trafficking-motivated straw purchases.

Enhanced Penalties

The BSCA increased the maximum penalty for straw purchases from 10 years to 15 years imprisonment. If the straw purchase is connected to terrorism, drug trafficking, or a crime of violence, the maximum increases to 25 years.

Warning Signs: How to Spot a Potential Straw Purchase

You cannot read minds, and you're not expected to. But you are expected to exercise reasonable judgment. The ATF has identified behavioral indicators that should raise your awareness:

At the Counter

• Two people approach together, but only one fills out the paperwork. The other person is selecting the firearm, directing the purchase, or showing more interest in the transaction than the person on the form.
• The buyer is on the phone during the transaction — apparently getting instructions from someone else about which firearm to select, what caliber, etc.
• Another person provides the payment. Cash handed from one person to the person at the counter. A card in someone else's name.
• The buyer seems unfamiliar with firearms but is purchasing a specific make and model — as if they were told exactly what to buy.
• The buyer hesitates on Question 21.a or asks what will happen if they answer "No."
• The buyer asks if there's a way to buy for someone who "can't come in today."

Transaction Patterns

• Same buyer making frequent purchases of the same type of firearm over a short period — potential trafficking indicator.
• Multiple buyers coming in separately but purchasing the same make/model and appearing to know each other in the parking lot.
• Buyer immediately hands the firearm to someone else after completing the transaction — in your parking lot, outside your store, etc.

How to Refuse a Suspected Straw Purchase

You are under no legal obligation to complete any firearms transaction. Federal law gives FFLs the right to refuse a sale at their discretion. Here's how to handle it:

1. Stop the Transaction

If you suspect a straw purchase, do not complete the transfer. You can stop at any point — before the 4473 is started, during the form, or after NICS returns Proceed. A "Proceed" from NICS does not obligate you to complete the sale.

2. Be Professional, Not Accusatory

You don't need to accuse anyone of a crime. A simple statement is sufficient: "I'm not comfortable completing this transaction." You are not required to give a reason. Do not debate or argue.

3. Document the Refusal

This is the step most FFLs skip — and it's the most important one. Create a written record of the refused transaction:

• Date and time
• Names and descriptions of the individuals involved (if known)
• What firearm(s) were being purchased
• What raised your suspicion — specific behaviors, statements, or circumstances
• How the transaction was terminated
• Name of the employee who handled it

4. Retain Any Partially Completed 4473

If the buyer started the form before you stopped the transaction, retain the incomplete 4473 in your files. Mark it as "Transaction Not Completed" with the date and reason.

5. Consider Reporting

You are not legally required to report a refused sale to the ATF. However, if you believe an actual straw purchase attempt occurred — particularly if the indicators were strong — you can voluntarily report it to your local ATF field office. Many FFLs do. It creates a record that demonstrates your good faith compliance and may help law enforcement identify trafficking patterns.

FFL Liability: What Happens If You Unknowingly Complete a Straw Purchase

If a straw purchase occurs at your counter and you didn't know — you followed your procedures, the buyer answered "Yes" to 21.a, and nothing raised a red flag — you are generally not criminally liable. The crime was committed by the buyer who lied on the form, not by the FFL who processed it in good faith.

However, the calculus changes if:

• You ignored obvious warning signs. An IOI reviewing your records and security footage who sees clear indicators that you should have caught will question your judgment.
• A pattern exists. Multiple firearms traced to crimes that were all purchased through your store by buyers with similar profiles suggests a systemic issue.
• You have no refusal documentation. If you've never refused a sale or documented a suspicious transaction, it raises questions about whether you're screening at all.

Training Your Staff

Every employee who works the counter needs to understand straw purchases. The FFL whose staff can't explain what a straw purchase is — or who has never been trained on how to handle one — is the FFL most likely to have a problem.

What to Cover

• What a straw purchase is and why it matters
• Question 21.a — what it means, how to explain it to customers, and how the gift exception works
• Questions 21.b and 21.n — the BSCA additions and what they target
• Warning signs — the behavioral indicators listed above
• How to refuse a sale — the script, the documentation, and the follow-up
• That they have full authority to refuse. No employee should feel pressured to complete a sale they're uncomfortable with. Back them up.

How Often

Initial training for every new hire. Annual refresher for all staff. Document the training — date, attendees, topics covered. Keep the records.

Building a Store Policy

A written straw purchase prevention policy demonstrates compliance intent and gives your staff a clear framework. It should include:

• Definition of a straw purchase in plain language
• Employee authority to refuse — make it explicit that any employee can stop a transaction
• Warning sign checklist — a printed list at each register
• Refusal documentation procedure — what to write, where to file it
• Reporting guidelines — when and how to notify ATF or local law enforcement
• Training schedule — initial and annual

Post the policy where staff can see it. Review it annually. Update it when the law changes.

Common Scenarios FFLs Encounter

"Can I buy a gun for my wife as a surprise?"

If the buyer is choosing the firearm, paying with their own money, and giving it as a genuine gift with no reimbursement — this is a legitimate gift purchase. The buyer answers "Yes" to 21.a. Not a straw purchase.

"My buddy is outside — he told me exactly what to get."

Red flag. If the other person is directing the purchase and will be the ultimate recipient, this is likely a straw purchase. Ask questions. If it doesn't resolve, refuse the sale.

"I'm buying this for my son — he's 20 and can't buy a handgun."

A parent can buy a handgun as a bona fide gift for their child, even if the child is under 21 and cannot purchase one from an FFL themselves. The critical factor: is it a genuine gift (no reimbursement), or is the child providing the money and using the parent as a proxy? If it's a true gift, it's legal. If the child is funding it, it's a straw purchase.

"Someone answers 'No' to 21.a."

Stop. The transaction cannot proceed. The buyer just told you they are not the actual buyer. Do not try to talk them into changing their answer. Document it and terminate the sale.

"Customer passes NICS but something felt off."

A NICS "Proceed" does not mean you must complete the sale. If your instincts say something is wrong — refuse. Document why. You'll never regret refusing a sale you were uncomfortable with.