Do I have to pay taxes in the state my affiliate marketing company is based in?

Back in 07, I filed my taxes through H&R block, they gave me the total amount I had to pay to the federal government. I sent them the check and paid.
Now, 5 years later, I got a call from a collections agency claiming I owe taxes to the state of Colordao (the state where my affiliate marketing company was based in) I have never actually lived or done any work in Colorado, the commission I earned was from companies all over the US that I promoted products for, my affiliate company in Colorado acted as a 3rd party.
The lady from the collection agency claims I owed 11k to Colorado back in 2007, and now, due to interest and fees, it?s at 34k. She gave me two days to establish a payment plan before she claimed they would garnish my accounts.
Does anyone have any information on this, when you do affiliate marketing, do you have to file for state taxes in every state you used an affiliate marketing company for?
From my understanding, you don?t have to pay taxes to states you haven?t worked in, even if your employer is a resident there. Does that qualify for affiliate marketing too?
Thanks.

In theory no. Do not talk with the debt collector at all! Ideally you should just get a tax attorney familiar with the Colorado law, but you could also call the relevant department in the state of Colorado and talk with them and chances are they will at least be able to explain their position.

General advice:

It all depends on your business structure and what actually constitutes "Nexus" in Colorado. If I am correct, they are one of the more strict states when nexus is concerned (hence why Amazon pulled their affiliate program out of there as well as my home state of IL).

In IL for example, the sole fact that I live here (even though I don't conduct business here physically since all my IM is virtual and have no clients in IL), constitutes my company having nexus in IL and I have to pay IL income taxes on my business.

Your best bet is as MrFleetWood suggested. STOP talking to the debt collector and get a tax accountant/CPA/attorney who deals with IRS audits. Work out a settlement and move forward.

Regards,

just get a lawyer man

Never contact the state tax dept or the IRS for these matters on your own, contact a tax attorney and let them represent you in the matter.