The paperwork is merely a record of sale that the PSP maintains in a semi-legal database. It is not considered a registry because handguns which are brought into the state by new PA residents, as well as handguns which were purchased before the database was established, are not included in the database. As such, they also cannot legally use the database as a registry (they can't confiscate your weapon just because the serial number is not recorded in their database as transferred to you).
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Then can I smash it with a sledge hammer and mail it to the psp with the paperwork?
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Sure, if you really want. I wouldn't bother though, I'd just keep the lower OR build a rifle out of it, and trade someone else for a similar AR. No PSP sales record/FFL transfer requirements for rifles.