ATF Proposes to Update the Definition of a Firearms Dealer

The Bureau of Alcohol, Tobacco, Firearms, and Explosives has published a proposed rule to update federal regulations that determine who qualifies as a firearms dealer. The change implements a 2022 law that lowered the threshold for when a person must obtain a Federal Firearms License to sell guns. Under the current rules, a person must be primarily motivated by both making a living and earning profit to be classified as a dealer. The proposed rule shifts the test to whether the person intends to predominantly earn a profit from the sales.

Why it matters: The practical effect is to expand the pool of people who must register as licensed dealers and run federal background checks on buyers. It closes a gap where individuals could argue they were not conducting a business because selling guns was not their main source of income. The rule is mostly administrative, but it changes the compliance threshold for anyone who buys and sells firearms regularly.

Who it affects

• Private sellers and collectors who regularly buy and resell firearms

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This proposed rule comes from the Bureau of Alcohol, Tobacco, Firearms, and Explosives at the Department of Justice; you should check the full Federal Register notice and the comment deadline before relying on it for compliance purposes.

Agency: Justice Department, Alcohol, Tobacco, Firearms, and Explosives Bureau
Source: Federal Register — read the official document