The only mitigation to DVLAs pound of flesh is the tax owing by the OP is small. A tax disc bought now or in a day or two will cover the untaxed period it was in the OPs ownership.
In this case, although the OP will have to pay the storage and release fees - DVLA will get poke all more back from him since the tax liability will be covered the moment he taxes the car and the amount of a fine for a few days untaxed won't begin to cover their expenses. Indeed, they'll try to get back tax for when the OP was not liable - so watch it.
Obviously shooting at the former keeper and caught someone who although guilty, is very small beer.
Keep ALL paperwork, and copy anything you send off. I hope you have a receipt.
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