You need to timely dispute the ATF denial. ATF is denying these applications under 922 (O) (1)
Except as provided in paragraph (2), it shall be unlawful for any person to transfer or possess a machinegun.
But if you read the section 922 (O) (2) (A), the exception, states that:
a transfer to or by, or possession by or under the authority of, the United States or any department or agency thereof or a State, or a department, agency, or political subdivision thereof; or
An approved Form 1 is under the authority of the United States or a department or agency thereof.
Is ATF claiming they are not an agency or department of the United States? Interesting, but they would have a hard time explaining this.
If you would like help filing your appeal, contact us ASAP before your right to appeal the wrongful denial cannot be appealed.
Note and Disclaimer: This is unsettled law, and there is no guarantee that you will be approved in an appeal of your denail