21708
                                                  MEMORANDUM
                                                  March 1, 1971

CC:ATF-12,736

to:       J. F. McCarren

from:     J. R. Wachter

subject:  M-16 Receivers

     Apparently the M-16 receiver is fabricated in two parts, and
the Enforcement Division has determined that the lower portion
should be considered the receiver, and, thus, a machine gun under
26 U.S.C. 5845(b).  This matter was discussed in a conference
attended by Mr. Powell and myself with Messrs. Darr, Westenberger,
Scroggie and, I believe, Mr. Wolfe, which included an examination
of the weapon.

     We were assured at that time that the lower portion comes
closer to meeting the definition of frame or receiver in 26 CFR
178.11 although both parts were necessary to function as a "frame
or receiver" in a machine gun.

     I can see some difficulty in trying to make cases against
persons possessing only the lower part of a receiver, but insofar
as the licensing, serial numbering, and special occupational tax
requirements are concerned, I feel that this is the only practical
solution.

     I recommend your approval.

                                                  [signed]
                                                  J. R. Wachter

I concur: [signed]
          W. T. Hare

Approved: [signed]
          J. F. McCarren

                                        INTERNAL REVENUE SERVICE