**GOTCHA !!** Sayeth the NJ tax man. Now this poor company has the ol' tax nexus blues
"By virtue of the fact that we located a server on their premises, the State of New Jersey considers us to have had a 'business presence' within the state," Mr. Hudson says. "They are now saying that, from their point of view, we were required as a company to have collected sales tax on purchases made by New Jersey residents, whether those purchases were made on our Web site or not. They are now requiring us to file both sales tax reports and corporate tax returns for [last year] and to pay New Jersey corporate income taxes on all of our business conducted during that period, including business conducted outside of New Jersey. Plus we are apparently subject to interest and penalties on the sales taxes and income taxes they claim we should have paid but didn't."