About paying tax in another state. Read more

[h1bfile]

Hi,
I am on H1B visa
1) my consulting company is in state of Arizona. my brother in-law is citizen of USA and we land on his home so we gave address of Arizona state to my consulting company and start issue pay stubs in Arizona because I stay and work in Arizone.
2) issue is now I am staying in colorado and workin in Colorado with same Arizona based consulting firm. but my consulting firm pay me pay stub and pay tax in Arizona state.
now my drivers license just cleared in colorado.
I am not using ID of arizona but I want to pay tax and issue pay stubs only in Arizona state.
I heard that it will create any issue if I work on client site in different state and pay stub is in another state.
I am not paying tax in Colorado even I am not planing to stay longtime in colorado. my contract is for 2years more, after 2years I will not going to work in colorado and will plan to move back to Arizona for rest of time until geting GC family based or Employement based.

please suggest if any issue in tax? I got 2 W2 from Arizona state never issue in past. any panelty or any tax issue? my employer (consulting firm ) told me no issue but I want to make sure safe side.

[shervin143]

What you are doing is plain illegal. Your company should file a new LCA and amend the H1B since your work location has changed. You should pay the taxes to the state where you are working. If you get caught, both you and your employer will be in big trouble both with IRS and with USCIS.