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The one thing that makes me nervous and stops me right now is that it has been illegal to drill and tap into the rear trunion and receiver unless you had approved form 1. The rules state that it cannot readily and easily acceot a stock , or something to that effect or am I mistaken?
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As long as you have a legal configuration to put it in, you can't be charged with constructive possession. There are BATF letters on the issue as well as a court case (Thompson Center Contender). Basically, if you can assemble it in a legal fashion, it is considered legal.
Now if you have it drilled/tapped, have the stock on hand and no other legal configuration parts (like the arm brace), that is when you may have a problem. Because you don't have a legal configuration.
The ATF tried to have the Thompson Center Contender kit (came with both rifle & pistol configurations) ruled an SBR 'kit' because you could switch between a rifle and pistol set up. The ATF said because the T/C Contender kit had both a rifle stock and pistol barrel, you had constructive possession of an SBR. The court said no because it also had a rifle barrel & pistol grip included. So, one could make it into a legal configuration (either a rifle or pistol). The court stated that having the parts wasn't enough to make it an SBR as long as there was also the option of a legal configuration. The same applies to an AK pistol with an arm brace. This is court rulings, not ATF opinion letters (which can change). So there is precedent for it.