Titling problem/ question

So i recently bought a bike from IL, i live in WI. I am the 3rd owner. 1st owner traded it to the 2nd owner a few months ago, but 2nd owner never re titled it under his name. (He got the bike in a multi-bike trade and had no interest in keeping it, also assuming he did not want to pay taxes on it when registering it.) The problem is that owner 1 wrote his name and the date of transaction on the title, but owner 2 never did anything with it. so now im stuck with this large discrepancy, since it says it was sold 4 months ago, yet i am just registering it now (assuming i just fill in the rest of the title and say i am the second owner, and 1 sold it to me.) does that seem like a good idea? i dont want the law running after me if they find out i skipped owner number 2. I have spoken with the guy who sold it to me and i have all of his info (dont believe its stolen at all.) His thought is to just skip him and say i am the second owner, although he gave me permission to add his name on it, but i dont think that will work because there will be 2 transactions and no new title. Additionally, the title says send bottom of slip in to the IL DMV after sale. do i have to do this since im out of state now? do i only deal with the WI DMV at this point? Thank you!