Or it can be altered into non-NFA configuration and merely removed from the registry. Last I heard, this removal is not even required, but is just requested, so there is no need to even wait for an acknowledgement.
Then it can be reassembled once a new Form 1 is approved. Meanwhile, it wouldn't have to be "in jail." The Form 1 and Form 4 are both $200, so there's no difference there I can see. The Form 1 may even be a faster approval.