This an excerpt from the NFA Handbook Sect 2.5:
Section 2.5 Removal of firearms from the scope of the NFA by modification/elimination of components.
Firearms, except machineguns and silencers, that are subject to the NFA fall within the various definitions due to specific features.
If the particular feature that causes a firearm to be regulated by the NFA is eliminated or modified, the resulting weapon is no longer an NFA weapon.
For example, a shotgun with a barrel length of 15 inches is an NFA weapon. If the 15- inch barrel is removed and disposed of, the remaining firearm is not subject to the NFA because it has no barrel. Likewise, if the 15 inch barrel is modified by permanently attaching an extension such that the barrel length is at least 18 inches and the overall length of the weapon is at least 26 inches, the modified firearm is not subject to the NFA.
NOTE: an acceptable method for permanently installing a barrel extension is by gas or electric steel seam welding or the use of high temperature silver solder having a flow point of 1100 degrees Fahrenheit.
This older thread also recommends sending a letter to the ATF notifying them of the change:
Q: Is it necessary to send notification to ATF and receive acknowledgement that the SBR or SBS has been removed from the purview of the NFA before it may be sold as a GCA firearm?
There is no requirement for the possessor of a registered NFA firearm to notify ATF that the firearm has been removed from the purview of the NFA. However, ATF recommends the possessor notify the NFA Branch of such changes in writing so that the possessor is not mistakenly identified as the owner if the firearm is later used in a crime. If, at the time of transfer, the firearm does not meet the definition of a SBR, it should be transferred without filing the NFA transfer application and without payment of the transfer tax.
Read the entire thread, as there was discussion that the specific statement above was removed when the FAQ's were revised in 2016.
https://www.m4carbine.net/showthread...m-NFA-registry
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