Hmm.. We moved out, gave a change of address (in new state), registered in new state, ignored all the scare letters since we HAD evidence that we have always been legal (in registration). Did’t even bother with new licenses for a few months. Finally (on third notice or so), I just called up CA DMV and described the wasteful threat letters they are sending OUT OF STATE and she just wiped it all clean from the computer.
I think giving an out of state change of address as soon as possible may reduce the pain as it takes time to trickle down the database.