They are threatening audits and tax assessments on me now. When I looked into it when they first bothered me they were saying that because I have a website which is accessible by people living in Michigan (like every other website on the internet) I am actively soliciting Michigan residents and I need to pay the State of Michigan taxes. Anyone else getting hammered? How did you handle it? I ingored it thinking that since I do not live in Michigan, sell to anyone in Michigan, or even enter the state or come within 100 miles of it, they were just blowing smoke. I guess I was wrong.