[iraiam]

No penalty for being denied, there may be a penalty if you use false information to attempt to buy a firearm.

I was denied once years ago, having never been charged with any crime I knew something was not right.

At the time, I was also receiving letters from the IRS stating that my SS number was being used by others.

I appealed the decision and it was corrected, I never got any explanation as to what the error was, just that it had been corrected.