She made the payment, filled out the paperwork and when the dealer saw that she stated no on the question if she is a US citizen, the sale was cancelled because she has to provide proof of her residency within the past 90 days such as utility bills, lease agreement, etc. According to the dealer, the ATF came out with this new rule about two weeks ago.
It sounds as though the dealer is trying to blow smoke somewhere that it isn't polite to blow smoke. A simple drivers license is more than sufficient for proof of residency. If the individual does not have a drivers license, then a state identification or other form of legal identification should suffice.
The only time I have heard of someone having to meet residency requirements were when someone was purchasing a hunting or fishing license with ID issued from a different state requesting resident licenses. In that case, yes, utility bills are sometimes required to show that you did reside in the state at that time.
If the BATF did pass such a rule it would be discriminatory because it does not affect U.S. Citizens in the same manner when purchasing a weapon. I personally don't think the dealer wanted to suffer the scrutiny when he had his records checked by the BATF.
Good Shooting
RED