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> So now they’ve lied to me about my income and demanded information that is none of their business.

I mean, not to be too harsh, but... Welcome to inter-state business operations. It's really up to the state what is "their business" when you are employing one of their citizens; that's the consequences of a system made of a federation of states, each state can set its own rules above-and-beyond federal rules in a pretty wide latitude.

There's a reason people hire lawyers to handle this stuff.




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