Thank you for your question, and thanks for requesting me directly
I hate to be the bearer of bad news, but if you are a Colorado resident you are taxed in Colorado on your world wide income. So, the short answer to your question is "yes" you should have been paying tax to Colorado on this income.
This is true even though you did not actually do business in Colorado
You will need to file amended tax returns for Colorado and remit payment for taxes. If you cannot pay your taxes right now, you can set up payment plans to assist you in spreading out the costs
That's not good. What immediate recourse does the state have in recouping taxes owed i.e. anything similar to what the IRS can do?
Yes, they can do pretty much anything the IRS can do. But, if you are proactive and work with them they shouldn't take any drastic measures
They aren't going to just levy your bank account if you are making efforts to pay
OK - thanks