Hi,

I work as a IT consultant for an company based in TN (No State Tax). I move every few months to different states and get W2 for those states. For 2006, I received W2 from CA, CO & NJ.
My question for you guru's is that- Is my company doing the right thing?

Can I just get one W2 of TN since I get paid from my office in TN and work for clients who pay to my company and not to me directly?

I would really appreciate your answer and also if you can provide me any link to IRS doc or tax law/regulation number.

Thanks Much,
KB

KB:

Yes, the company IS doing the correct withholding as required by the state laws involved.

I cannot provide a link, but it is generally accepted practice for state to tax income earned within their state borders. Professional baseball, basketball and football players have to file state tax returns for each state in which they play to pay taxes on a prorated portion of their annual salary. It has been that ways for decades.