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Got a call from the ATF insp. that did our audit

Locust ForkLocust Fork Member Posts: 32,080 ✭✭✭✭
edited July 2013 in General Discussion
It has been several months since we had our audit. I never heard anything back from them....and the inspector told us to just continue on doing business like we have when he left. That alone told me that it was obvious that we were not "lawbreakers" or trying to do anything other than normal business here.

He did find errors....it was paperwork mess.

I talked to him because back when they did the inspection he said since we have an LLC both people that are on the LLC (Larry and myself) need to be on the FFL. So, we filed for a new FFL. I never heard back from them....and it has been plenty of time. I called him and left a message asking if he could please check on why the new FFL paperwork had not come.

He gave me a call back and told me that he had the application for the new FFL on his desk....but he didn't know if we needed that yet. So...now I'm confused. First we needed to have a new FFL because of the LLC....now they don't know if I do or not.

What I think....they are not wanting to give us the new FFL because it will void out the errors that they found on this inspection. A new FFL means a whole new clean slate. With having this inspection showing errors if they come after us in the future they have that to fall back on. At least that is what my tin foil hat wearing persona tells me.

Anyhooo....the inspector says he will be suggesting to his bosses that we be warned and get to continue business. Of course he had to give me that added warning "they can go against my suggestion, but they normally don't"....just so I have that churning worry that comes with this sort of thing.

What kills me about this is what I read people saying about other gun dealers when they are shut down. Its automatically thought to be all the dealer's fault. People say "you should know better" and "if you are a dealer you should KNOW how to do things right." This is easy to say....but nobody is perfect. Do you drive your car perfectly....never breaking the law....if someone could come to you with recordings of every time you drove for the past three years....would you loose your license????

I'm just venting. Oh well.....
LOCUST FORK CURRENT AUCTIONS: https://www.gunbroker.com/All/search?Sort=13&IncludeSellers=618902&PageSize=48 Listings added every Thursday! We do consignments, contact us at mckaygunsales@gmail.com

Comments

  • woodhogwoodhog Member Posts: 13,115 ✭✭
    edited November -1
    Just hope he doesn't transfer you over to their 'lost box' division.
  • bigcitybillbigcitybill Member Posts: 4,913 ✭✭✭
    edited November -1
    Overall and in general, you seem like an exemplary gun dealer.

    I think they're just trying to rattle your cage.
  • bigcitybillbigcitybill Member Posts: 4,913 ✭✭✭
    edited November -1
    Or, as my grandpa used to say, giving you "the business".
  • Locust ForkLocust Fork Member Posts: 32,080 ✭✭✭✭
    edited November -1
    I really REALLY try. I was shocked at the number of silly errors they found. Its very obvious that there are no guns that come to me that aren't dealt with exactly like they should, but dang it if I didn't forget to sign things, put my address down, didn't get a driver's license number one time, let a guy pick up a delay a day early (he had a proceed for that day on one transaction and I let him pick up two transactions.)

    Thank you Bigcitybill. You are sweet for saying so.
    LOCUST FORK CURRENT AUCTIONS: https://www.gunbroker.com/All/search?Sort=13&IncludeSellers=618902&PageSize=48 Listings added every Thursday! We do consignments, contact us at mckaygunsales@gmail.com
  • Locust ForkLocust Fork Member Posts: 32,080 ✭✭✭✭
    edited November -1
    Oh....and this is the first inspection so they went through my books from the beginning of time. You cannot imagine the mess they had to dig through. Its like going through someone's homework in the 12th grade for the first time ever....going all the way back to 1st grade.
    LOCUST FORK CURRENT AUCTIONS: https://www.gunbroker.com/All/search?Sort=13&IncludeSellers=618902&PageSize=48 Listings added every Thursday! We do consignments, contact us at mckaygunsales@gmail.com
  • shootuadealshootuadeal Member Posts: 5,301 ✭✭✭✭
    edited November -1
    Try this:

    http://www.fflguard.com/

    May seem expensive but I believe their "Law plus guidelines" alone are worth the money or as everyone else here says about us FFL's--The "cost of doing business"

    We had audits that were probably similar to your last one(most likely since you don't really say what violations you had leaving it vague) and I joined up with FFL guard to protect the business if necassary.

    About a year and half after our last audit with violations we had another that we pretty much "aced".

    BTW, you WILL have another audit between 12-18 months from the completion date of your last audit that resulted in a warning letter. Fact. Be ready for it.
  • GuvamintCheeseGuvamintCheese Member Posts: 38,932
    edited November -1
    These folks have a job to do. Don't let them inside your head. It's just their job!
  • Locust ForkLocust Fork Member Posts: 32,080 ✭✭✭✭
    edited November -1
    I don't do many transfers....just people that I know. One guy uses me about once every three months to get whatever he buys on line. I forgot to put his drivers license on one of the 4473s. There were a few forms that didn't have our FFL number and address filled in (not many) There was one guy that won two guns.....about three months apart. He got a proceed on both forms, but the SECOND form he had checked yes down all the boxes. (Shelby missed that one) He was buying a super old Smith 22lr revolver on both occations.

    We had one gun that didn't get logged out. I know exactly where it went....and I contacted the guy and found out he sold it to a local store (so it is very traceable.) I still don't have my paperwork from the IRS...so I cannot put my hands on the form.

    Altogether there were 13 mistakes...but each thing is easy to see that it was nothing but human error.

    One of my friends asked if I had any cheap shotguns. There is always a pile of single shots and such here....so I let him buy one. He got a delay. He called back two days later and asked if he could buy another one he had seen out of the pile. Sure...come do another form. He did and got a second delay. The very next day was the IRS raid mess. The day after the raid he was supposed to come pick up the first transaction. I was a frazzled MESS. I gave him both things and didn't think twice about it.

    Back when I worked retail the inspections came pretty regular. We were a high volume store...so they just came every other year or so. It helped to get things straight and fix things that were missed.....like when the computer didn't log out Glenfield 22s because they were logged in as Marlin 22s.

    I don't know if it is more worrysome because I am a "kitchen table dealer".....I really do think they try to do away with as many of the smaller dealers as possible. The retail stores they see are doing a little for the economy....but the home based dealers aren't anything like this in their eyes. At least that is my impression.
    LOCUST FORK CURRENT AUCTIONS: https://www.gunbroker.com/All/search?Sort=13&IncludeSellers=618902&PageSize=48 Listings added every Thursday! We do consignments, contact us at mckaygunsales@gmail.com
  • Locust ForkLocust Fork Member Posts: 32,080 ✭✭✭✭
    edited November -1
    quote:Originally posted by cartod
    These folks have a job to do. Don't let them inside your head. It's just their job!


    You are right.

    I don't know why, but I feel like a target these days.
    LOCUST FORK CURRENT AUCTIONS: https://www.gunbroker.com/All/search?Sort=13&IncludeSellers=618902&PageSize=48 Listings added every Thursday! We do consignments, contact us at mckaygunsales@gmail.com
  • select-fireselect-fire Member Posts: 69,529 ✭✭✭✭
    edited November -1
    certified letters are your friends.
  • MobuckMobuck Member Posts: 14,163 ✭✭✭✭
    edited November -1
    The blonde twerp that did the inspection here came right out and said there would be no more renewals for "kitchen table" dealers and that was 3 years ago. The other dealer in the immediate area was forced to move his business to a "store front" in the county seat town where there is full time law enforcement(why should that be a requirement?).
    Doing business by internet(as in Gun Broker)? Not acceptable. You MUST have walk in customers. The inspector told me all this BEFORE pointing out the "human errors" and beginning the intimidation phase.
  • pirate2501pirate2501 Member Posts: 1,851 ✭✭✭✭✭
    edited November -1
    All inspectors no matter what they are inspecting almost always have to find some discrepiancy in order to justify their job. [;)]
  • shilowarshilowar Member Posts: 38,811 ✭✭✭
    edited November -1
    quote:Originally posted by Locust Fork
    quote:Originally posted by cartod
    These folks have a job to do. Don't let them inside your head. It's just their job!


    You are right.

    I don't know why, but I feel like a target these days.


    It probably has something to do with the power they have to ruin people's lives and put them in prison!! Just a guess tho [:D]
  • chiefrchiefr Member Posts: 14,115 ✭✭✭✭
    edited November -1
    It is always a PITA to deal with govt beaurocrats and not just federal, but depending upon where you live, state, and local beaurocrats as well.
    Often they change a reg or law and don't even bother to tell licensees. It is your responsibility they say.


    Large corps have to hire a large staff of compliance officers and lawyers for the purpose of ensuring complaince and defending them from legal actions and frivolous lawsuits. Some laws are so ambiguous and vague, they have to pay an interpreter. Cost to comply costs corps billions -- passed on to the consumers of course.

    Sadly, small business does not have the capitol to maintain a staff of compliance personell, lawyers etc. All it takes is one minor mistake to have a licence/permit revoked, or one lawsuit to destroy a small business. Plus fines can run the range of minor to devastaing.

    We hope you fair well.
  • pietro75pietro75 Member Posts: 7,048
    edited November -1
    quote:Originally posted by cartod
    These folks have a job to do. Don't let them inside your head. It's just their job!


    Yes, Doing this day in and day out, the guy probably has no idea or intention of making you sweat. He wants to go home and drink beer just like the majority of employees. It will be over soon and just like making it through a recession, you will then have made it through an audit as well.

    The next one will be business as usual. [:D]
  • Toolman286Toolman286 Member Posts: 3,251 ✭✭✭✭
    edited November -1
    We had a similar glitch in that at some point, the "Inc." was dropped from the license. It took a few months, but we received a new license. We then had to transfer all our in stock firearms to a new set of books & we still have the original set of books.
  • we_dig_itwe_dig_it Member Posts: 6,614 ✭✭✭
    edited November -1
    Seems if they were going to do anything they would have already done it.
  • ruger41ruger41 Member Posts: 14,665 ✭✭✭✭
    edited November -1
    Sounds like maybe you have too many irons in the fire for one person and it caused 13 mistakes. Mistakes that could get your license revoked. The ATF could care less if you stay in business or not...to most of them the fewer home based FFL's the better. As shootuadeal said you better be ready for another audit. Get your ducks in a row and watch the errors. We just had a gun shop here in WA that the ATF has forced out of business after being in business over 60 years. Word is they failed a second audit.
  • mark christianmark christian Member Posts: 24,443 ✭✭✭✭
    edited November -1
    I believe that you (meaning you personally) long ago reached the point where you simply cannot handle every facet of your business by yourself. Based on many months of your threads it also appears that you have working with you what my buddy Ron liked to call Helpless Helpers: People who should be reducing your workload but are in fact adding to it through endless small errors. While these are not intentional mistakes and individually they don't amount to much, when taken as a whole they look very bad. 13 errors in a compliance inspection is quite a few and many more than even a high volume storefront would typically have. I understand that you grew up in the gun business so you know that as well as I do. I would expect a solid slap on the wrist and regular inspections for several months until the BATF is satisfied that you have things sorted out. In the meantime it would be a good idea to go out and actually find someone who is competent enough to actually log guns in and out and keep the paperwork in order.
  • rscoleman88rscoleman88 Member Posts: 4,250
    edited November -1
    The guy sounds incompetent. First you need a new FFL, then you don't, complete lack of communication or at least communications that depend on you to call him after not hearing anything for a while. More inept government employees.
  • Locust ForkLocust Fork Member Posts: 32,080 ✭✭✭✭
    edited November -1
    I do agree that my assistant is a MORON and I really could use someone that was more "alert" and better at the secretarial type duties that this job entails. It would be nice to have someone that was familiar with quickbooks. This lady's phone voice alone should be a reason to replace her. (Its a raspy, needs to clear her throat constantly, sound that drives me BONKERS to hear each and every day.)

    When you are with someone day in and day out...and thats the only person you deal with you tend to pick their faults to pieces.

    13 minor errors over several years isn't really all that bad. Since I have never had any audits they went from now....all the way back to the beginning. We are talking 8 years of records. I don't think it was horrible.

    Back when we were in retail the computer errors with the log book were the most frustrating. You didn't know what mistakes were there until you actually printed the A&D book out....and went through the whole store to find out if it matched the inventory. There were ALWAYS things you had to figure out when you did this. Then you had the fact that 10 employees were doing the paperwork....there were always silly things like the hospital name put where "place of birth" goes....or other silly mess.

    When we had the inspections at the store if it was correctable as we went along they let us fix things. After an audit it was almost a good feeling to know your errors were all gone and things were fine.

    I don't understand why "human error" type mistakes can be used to harass a business. I understand if you are doing anything KNOWINGLY wrong...or if you are in any way doing anything that would be criminal....but minor errors that were not intentional should not be allowed to be used to shut someone down.
    LOCUST FORK CURRENT AUCTIONS: https://www.gunbroker.com/All/search?Sort=13&IncludeSellers=618902&PageSize=48 Listings added every Thursday! We do consignments, contact us at mckaygunsales@gmail.com
  • jltrentjltrent Member Posts: 9,344 ✭✭✭✭
    edited November -1
    It could always be worse.

    chumlee_t607.jpg
  • Locust ForkLocust Fork Member Posts: 32,080 ✭✭✭✭
    edited November -1
    I actually think I have a 57 year old female chum-lee sitting across from me right now
    LOCUST FORK CURRENT AUCTIONS: https://www.gunbroker.com/All/search?Sort=13&IncludeSellers=618902&PageSize=48 Listings added every Thursday! We do consignments, contact us at mckaygunsales@gmail.com
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