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I am not citing the wisdom of refusing to cooperate with your local LEO as ther are many other trumped up charges that can be leveled against you, but the fact remains that, if you are arrested for refusing to show paperwork, you have a great lawsuit for false arrest.
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I think you're missing the point.
You would not be arrested at this junction. You would be DETAINED, pending further investigation. The presence of a fully automatic firearm without documentation of any type would lead a reasonable person to believe that the firearm MIGHT be illegally possessed. Thus, you would be detained until the proper documentation turned up.