We are an 01 FFL with SOT. We have a police department that wants to trade in their unregistered machine guns for other rifles. What needs to be done to take in their trades? I have heard several opinions. Do they need to be cut at the PD, documented and ATF notification? The NFA branch said we would use Form 5 (2 different calls and 2 different people). I thought we could bring them to our shop and cut the receivers there, no forms. Log them in, cut them, then log them out as destroyed. Does anybody know for sure?