Busted by code enforcement

Ok so I don't post a lot on this site but more or less look for information. I got a letter in the mail today saying my duster is in violation of not being tagged. It currently does run but have been working on it and am building a 360 for it. Has anyone else run into this and what do I say to the officer. Oh yeah btw the reason I didn't re register it was the exhaust crapped out and I wasn't going to spend the money to fix it when I had started on the 360 and would have to rebuild a new exhaust anyway. Any thoughts and ideas would be great. Thanks! Brett