United States Department of Justice, Office of Justice Programs, Bureau of Justice Statistics

“ Purchase permit systems require a prospective firearm purchaser to obtain, after a background check, a government- Issued document (called a permit, license, or identification card) that must be presented to a seller to receive a firearm.
Rejection occurs when an applicant is prohibited from receiving a firearm or a permit that can be used to receive a firearm, due to the finding of a disqualifying factor during a background check. ”

“ The Brady Act allows a transfer to proceed if a disqualifying record is not found within the 3-business-day limit for a NICS check. Some States have laws and regulations that allow their agencies to deny or delay a transfer if an incomplete record is being researched when the time limit expires. ”

“ A State point of contact may also refer denials to the nearest field office. Agents verify prohibiting information and conduct other investigations. If ATF finds that a person should not have been denied, they notify the FBI or the POC. In a delayed denial case, the agent contacts the firearm purchaser and seizes or takes an abandonment of the firearm. The agent could also coordinate a transfer of the firearm to a licensed dealer or to a third party who is not a prohibited person. ”

“ The FBI electronically transmits NICS denial data to ATF's Brady Operations Branch daily. In 2005 the FBI referred a total of 67,713 NICS denials to ATF's Brady Operations Branch. Standard referrals by the FBI NICS contain data on prohibited persons who unlawfully attempted to purchase a firearm. Some prohibited persons obtain a firearm during an "open transaction," where the FBI has not completed a check in three business days and the dealer is allowed to transfer the firearm. ”

“ ATF's Brady Operations Branch searches databases for additional information on denied persons referred by the FBI. ATF and United States Attorneys have developed referral criteria for all 94 judicial districts that reflect the types of cases most likely to merit prosecution. After initial screening, 9,575 denials which met the established guidelines were referred to Field Divisions. ”