The form three has a third block for Sole Proprietor. The form 4 does not offer that option.
Last year I had a form 4, individual to SOT, with neither block checked and it was approved.
This year I sent one in the same way, neither block checked, and it was returned indicating one of those blocks needed to be checked. That is why I created the original post in this thread.
I returned the form 4 checked individual and they sent it back again. I then changed it to the other block and it was approved.
Those blocks were not present on the form 4 prior to 2016, when ATF started to focus on Trusts, etc. So I think the real intent was to help differentiate Transfers going to non-licensees. But with a Form 4 going to an SOT apparently some examiners don’t care about those blocks. Now we know that at least one does care.
I am posting this more lengthy explanation in the hopes that it might help others avoid the same delays.