ATF Transparency Act

This bill amends the Internal Revenue Code of 1986 to establish an administrative relief process for individuals whose applications for firearm transfer and registration are denied. This process allows transferees to appeal denials based on federal or state prohibitions, receive their NICS transaction number, and provide information to prevent future erroneous denials, mirroring existing federal appeal procedures. Crucially, the bill mandates reimbursement for reasonable and necessary attorney fees incurred by transferees in successful appeals. The legislation also introduces strict timelines for the processing of firearm applications. If the Secretary fails to make a determination on a firearm transfer application within 90 calendar days , the application is automatically deemed approved, permitting the transfer. A similar 90-day deemed approval provision applies to applications for making and registering a firearm. Denials can only be based on a failure to meet applicable requirements, not on the inability to complete processing within the specified timeframe. To improve transparency and efficiency in background checks, the bill requires several reports and inter-agency agreements within 180 days. These include a joint report by the Comptroller General and DOJ Inspector General on unresolved NICS inquiries and recommendations, along with a separate DOJ IG report on NICS inquiries administered by the FBI for the ATF. Additionally, the Directors of the ATF and FBI are mandated to establish a memorandum of understanding concerning NICS administration and processing.