Bureau of Alcohol, Tobacco, Firearms, and Explosives Reform and Firearms Modernization Act of 2011

Bureau of Alcohol, Tobacco, Firearms, and Explosives Reform and Firearms Modernization Act of 2011 - Amends the federal criminal code to revise the civil penalties for violations of firearms law and the procedures for assessing such penalties. Requires fines to be based upon the nature and severity of the violation, the size of the firearms business involved, and the prior record of the firearm's licensee. Prohibits consideration of the amount of fines or license revocations imposed by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in the retention, promotion, or transfer of such agents.

Revises the definition of "willfully" for purposes of firearms violations and standards for criminal violations of firearms recordkeeping requirements.

Requires the Attorney General to: (1) make preliminary determinations on firearms license applications and notify applicants in writing of a proposed denial; and (2) establish guidelines for ATF inspections, examinations, or investigations of possible firearms violations.

Permits an owner of a firearms business whose license is expired, surrendered, or revoked 60 days to liquidate inventory.

Allows purchasers of existing firearms businesses the right to cure firearms violations attributable to such businesses.

Allows the transfer, possession, and importation of machineguns for industry testing, training, and film production.

Eliminates the requirement of written permission for the use of a handgun for lawful purposes by a minor (under age 18) where a parent or legal guardian is present at all times during such use.

Prohibits the Attorney General from electronically retrieving inactive firearms licensee information by name or personal identification code.

Directs the Attorney General to authorize the importation of all frames or receivers of rifles, or barrels for firearms other than handguns, if the importation is for repair or replacement purposes.