We have an ongoing investigation about this issue, marjanbastani.

It isn't the kind of experience that we want you to encounter. Rest assured, our engineers are all hands on deck to figure out what causes the discrepancy and have it resolved the soonest.

As of now, I'd recommend reaching out to our Phone Support team so you'll be added as one of the affected users. Here's how:

You can contact them by clicking the ? Help icon. Then, follow the on-screen instructions to successfully get in touch with one of our agents.

We appreciate your patience while we're working to resolve this investigation. Take care!

Do you have any idea when the Sales Tax Liability Report will be fixed?  This thread has been going on for almost a year now!  It seems ridiculous that we cannot rely on this important report.

My company has both sales of non-taxable products, and also sales to tax-exempt customers.  Neither show up in the Sales Tax Liability Report, or the Taxable Sales Summary Report even when it is customized to include non-taxable products and non-taxable customers.  The reports are basically useless.

Many people rely on your product to get correct numbers for their sales tax reporting.  I find it unconscionable that you have not reached out to your customers to let them know that these reports are incorrect.  You are causing many businesses to file their sales tax reports incorrectly!  Please let people know!

Absolutely agree that this issue needs immediate resolution!  We are paying for a service that provides incorrect information which could ultimately include audits and fines from taxing entities.  At this time, your services is a liability to me and we are considering a transition to another company.

This has been going on too long! 

This shouldn't be marked as "closed".  The report is still wrong, it still doesn't include invoices that do not have any line items that are taxable (thus, the gross sales and non-taxable columns are both wrong).    I have tested my theory and proved that it is correct and yet without action, my case is marked close and the problem still exists.

What will it take to get this rectified?    

Really, this is unacceptable.   All engineer's hands cannot be on deck to fix this or it would be fixed by now (or else get better engineers).

Sales Tax report only pulls invoices/sales receipts that include a taxable line item.   The sales tax owed to various agencies is usually correct, but without a correct "gross sales" and "non-taxable sales" and actually, sales to tax exempt entities, we are unable to file our sales tax without pulling 2 or three other forms for data and then manually footing the numbers.   I (apparently as well as others here) are putting in extra hours that I cannot bill for because Quickbooks is wrong.

Please, please fix it!   I've spent hours on the phone with your support people and still no action.  I've offered to show your engineering staff directly what is going on but curiously no one is interested and then my case gets closed.

Thanks.

Hello Plum!  OMG I thought I was the crazy one!!  My 2020 sales tax I have filed was filed incorrect and have no idea if I should rely on QBO for any of the report.  

Just had my entire morning wasted by QBO chat support trying to figure out what's going on with the sales tax liability report. See chat below!!

 at 9:54, Feb 12:

We are connecting you to the expert you asked for. While you wait, check out QuickBooks Help, https://quickbooks.intuit.com/learn-support/ , where you can find articles, tutorials, videos, and more.

 

 

Info

 at 9:54, Feb 12:

John Rex M joined the conversation.

 

 

John Rex M

 at 9:55, Feb 12:

Hi! Thank you for choosing Intuit QuickBooks Accountant Care, this is Rex. I hope the day has treated you with happiness. I can see that you have concern with the report, correct?

 

 

You

 at 9:55, Feb 12:

 

 

yesSent

 

John Rex M

 at 9:56, Feb 12:

I see is this for QBO or desktop?

 

 

You

 at 9:56, Feb 12:

 

 

my gross sales amount for sales by customer does not tie to gross sales on the sales tax liability

John Rex M

 at 9:58, Feb 12:

thank you! let me check this account

 

 

John Rex M

 at 10:04, Feb 12:

Can we check this link it these are the steps that you need to do to have it fix

 

 

John Rex M

 at 10:04, Feb 12:

https://quickbooks.intuit.com/learn-support/en-us/account-management/why-do-i-get-different-figures-...

 

 

John Rex M

 at 10:04, Feb 12:

Did you do that already?

 

 

You

 at 10:04, Feb 12:

 

 

yesSent

 

You

 at 10:04, Feb 12:

 

 

didn't workSent

 

John Rex M

 at 10:07, Feb 12:

Did you try manually compare both reports to see what's missing.

 

 

You

 at 10:10, Feb 12:

 

 

How I do generate the gross sales report in the sales tax liability report? It only gives me taxable & non- taxable amounts. I could then compare both reports to see what's missingSent

 

John Rex M

 at 10:13, Feb 12:

Did you try this

 

 

John Rex M

 at 10:13, Feb 12:

Click Reports in the left navigation menu.

 

 

John Rex M

 at 10:13, Feb 12:

Scroll down and look for the Sales tax section.

 

 

John Rex M

 at 10:13, Feb 12:

Select Taxable Sales Summary.

 

 

John Rex M

 at 10:13, Feb 12:

Modify the Report period as necessary.

 

 

John Rex M

 at 10:13, Feb 12:

Click Run report.

 

 

You

 at 10:16, Feb 12:

 

 

See the gross sales column, I need details of those amounts but it won't let me double click on anyone of themSent

 

John Rex M

 at 10:16, Feb 12:

Let me try other option let me do some run through on my quickbooks

 

 

John Rex M

 at 10:22, Feb 12:

.

 

 

John Rex M

 at 10:23, Feb 12:

Trying different option here.

 

 

John Rex M

 at 10:23, Feb 12:

By the way is this on sales tax center or on report?

 

 

You

 at 10:24, Feb 12:

 

 

yes it isSent

 

John Rex M

 at 10:24, Feb 12:

On sales tax center?

 

 

You

 at 10:24, Feb 12:

 

 

yesSent

 

John Rex M

 at 10:25, Feb 12:

Thank you

 

 

John Rex M

 at 10:27, Feb 12:

On that it won't let you click can we go to liability report

 

 

You

 at 10:29, Feb 12:

 

 

when you go to the liability report and click the gross sales, it pulls up the taxable portion only.Sent

 

John Rex M

 at 10:33, Feb 12:

Let me try other option here

 

 

John Rex M

 at 10:34, Feb 12:

You try on the report already correct?

 

 

You

 at 10:34, Feb 12:

 

 

yes i didSent

 

John Rex M

 at 10:35, Feb 12:

Let me try something

 

 

You

 at 10:38, Feb 12:

 

Sent

 

You

 at 10:38, Feb 12:

 

Sent

 

John Rex M

 at 10:38, Feb 12:

1.Click on Reports from the left pane.
2.On the search field, key in Taxable Sales.
3.Choose Taxable Sales Detail.
4.Click on Customize
5.Enter the appropriate date range in the General section.
6.Select on Filter.
7.Under Filter, check the box next to Customer Taxable. This will ensure all customers with non-taxable sales are listed
8.Check the box next to Product/Service Taxable, select Taxable.
9. Select Run report.

 

 

You

 at 10:39, Feb 12:

 

 

I believe the gross amounts in these 2 reports should be similarSent

 

You

 at 10:42, Feb 12:

 

 

only shows taxable salesSent

 

You

 at 10:45, Feb 12:

 

 

if we can figure out how to get the details of the $303187.81 gross amount in the sales tax liability report i sent, we can then manually compare it to the $418851.31 gross amount in the sales by customer summarySent

 

John Rex M

 at 10:46, Feb 12:

Once you figure the difference all you need to to is to make a JE on what is missing

 

 

You

 at 10:47, Feb 12:

 

 

I can't make a JE without understanding why it's not matching. What customer would I allocate the missing sales amount? That's why we need to see what details are in the $303K.Sent

 

John Rex M

 at 10:48, Feb 12:

For this one the only reason why its not matching is that there's a missing transaction on this.

 

 

John Rex M

 at 10:49, Feb 12:

That is why we need to match and find out what is it.

 

 

You

 at 10:54, Feb 12:

 

 

Any suggestions?Sent

 

John Rex M

 at 10:54, Feb 12:

That what I am trying here on my end other options.

 

 

You

 at 10:54, Feb 12:

 

 

okSent

 

John Rex M

 at 10:54, Feb 12:

 

 

You

 at 10:57, Feb 12:

 

 

yesSent

 

John Rex M

 at 10:57, Feb 12:

Did you try the last steps I give?

 

 

You

 at 10:57, Feb 12:

 

 

yes, it didn't workSent

 

John Rex M

 at 11:02, Feb 12:

On sales tax liability report won't work also?

 

 

You

 at 11:02, Feb 12:

 

 

noSent

 

John Rex M

 at 11:07, Feb 12:

In here there are no other option, the last option is to make the journal entry of the difference and use the account of sales tax liability. then the other one is income

 

 

You

 at 11:11, Feb 12:

 

 

Nope, that's the correct way to do it. Obviously there's a bug in the sales tax liability report function that appears QB is not aware of. You can't just make a JE without determining what the cause of the discrepancy is. Allocating the difference to sales & sales tax liability without using the A/R function is not proper accounting policy.Sent

 

You

 at 11:12, Feb 12:

 

 

can you forward this issue to QB developers to determine what's happening? We also didn't have this issue until QB made an upgrade to the entire sales tax tab.Se

Just chiming in to say I also have this problem. My Sales Tax Liability Report (as well as my Sales Tax return info) shows gross sales as only the total of sales in transactions that had a taxable item. 95% of my sales are nontaxable services so it is incredibly off. This just started happening for this last month.

I am having the same issue and have verified that it is a global issue affecting all 17 of my clients that report sales tax. THIS IS AN EXTREMELY SERIOUS ISSUE. I have been filing incorrect sales tax returns for my clients and they have overpaid sales tax as a result. Quickbooks is expensive software (the price has increased 743%!! since becoming cloud based) and it should perform its basic function: to accurately report numbers for filing taxes. It is egregious that Intuit has known about this issue for almost a year and has still not fixed it, nor even warned its customers not to rely on the incorrect reports in the meantime.

I first called about customer support about this issue on 1/26/21. The rep told me she was escalating the case to an investigation and would email me an investigation number. After hearing nothing, I called back on 2/19/21 and spoke to Ashley, case #[removed]. She told me that the previous rep had never escalated the case. After speaking with Ashley for 2 hours and 58 minutes, and sharing my screen so she could verify the issue, she did open an investigation, #INV55206. She assured me the engineers would work on the issue and to call back in a week to check progress. However, 10 minutes after the call ended, I received these email gems from Quickbooks:

To recap, they are saying that to fix the issue of non-taxable sales not showing up on the report, I should mark all non-taxable sales as taxable. WHAT?? This is a ridiculous suggestion, and would obviously create an entirely other problem: incorrectly collecting sales tax on non-taxable items and reporting non-taxable sales as taxable.

One minute later, I get a second email:

"Thank you for requesting updates on Sales tax liability report not reflecting correctly for gross and non-taxable sales.  Our engineers have determined this is working as designed. We appreciate your understanding and encourage you to share your concerns or ideas via the in-product Feedback tool.

I RECEIVED THIS EMAIL THIS MORNING-----  this is a different issue and I am still trying to find out what is happening with the Sales Tax Liability Report ISSUES.     THIS IS THE Subject line for a message on Feb 19th

Case:[removed] quo Sales Tax Bug    [ ref:_00Di0Xs0j._5003j1o29G8:ref ]   In one place you refer to Return Not Matching; then you refer to it as Sales Tax BUG.

I have contcted QBO/Intuit countless times about the Sales Tax Liability Report showing incorrect Dollar Amounts;

this is one of the replies I received-----    I ran the report again this morning, hoping it was fixed.....NOT   Same Issue exists.  PS  Cleared my CACHED files no change.

Hi, Jevans.

The email message you received is an update about the Sales tax liability report not reflecting correctly for gross and non-taxable sales. 

After our engineers did a thorough investigation, we have found out that when you are creating invoices with non-taxable items, if the tax box is not checked, these invoices will be completely omitted from the sales tax liability report. If you are in this situation, the workaround would be to make sure that box is always checked for both non-taxable items and taxable items. 

Please be assured that the taxable and non-taxable sales on the sales tax liability report is driven by the Sales tax category on the item itself. For now, you can trust the gross sales amount from the profit and loss to be the accurate total gross sales.

To know how to use the Sales Tax Liability report, see this article: Check how much sales tax you owe in QuickBooks Online.

If you have more questions about the Sales Tax reports, please let me know. I'll be here to help you out. 

MirriamM

I fail to see how this can be a "workaround".  By taxing both taxable and non-taxable items, the gross sales will be correct but then the other two columns will be wrong - non-taxable and tax amount.   So in effect, we will have gained one correct column at the cost of what was a correct column (tax amount) now being incorrect.  Please help us understand how this is a workaround?

Also - when the report is corrected, it needs to include a column for sales to tax exempt entities, as it sits today, this critical piece of information is missing resulting in significant work to locate the amounts and then determine what elements of the sale have been (or not) included in the STLR.

It's really beyond belief we are still dealing with this issue, which as others have also pointed out, is leaving some users who may not be aware of the issue with potential liability to their state for sales tax for filing incorrect information (i.e. missing gross and some/all non-taxable sales).

WHEN can we expect this to be resolved?

Plum

Hey @jpgrowers 

Been through the exact same frustration now several times..  4 I think to be exact.  On the phone forever... share a screen, hours of pulling up reports with the CS rep, showing where the problem is.  They agree, say they are going to open an investigation and then.......  crickets... or sometimes I get an email saying the engineers found no problem and the case is closed.

Wondering what it's going to take to get someone to fix this problem.

Plum

Hi Mirriam,

Thanks for the update. However, this work-around will not work for us since the clients we are having issues with purchases both taxable and tax-exempt products and services for us. So we need to be able to toggle the checked box on and off per line item as needed (instead of making every single item for that client tax exempt).

Is there an update as to when this issue is going to be resolved? The workarounds are not a solution. This is SO frustrating and absolutely outrageous that Quickbooks can not create correct sales tax liability reports.

 "we have found out that when you are creating invoices with non-taxable items, if the tax box is not checked, these invoices will be completely omitted from the sales tax liability report. "

it sounds like you have found the bug we are all describing. I'm calling it a bug, because it only appeared for me in the past two months. Before that (for at least the past 2 years), my Gross Sales included sales with non-taxable items. 

Something changed.

PLEASE INTUIT - FIX THIS ISSUE

the workaround you are suggesting sounds like we need to charge tax on non-taxable items. that makes no sense

Same exact issue with our company and client files - My workaround: I'm pulling my gross sales from the P&L, and then utilizing the taxable value from the sales report for taxable sales, and deducting this amount for the non taxable from the P&L. I'm so thankful that our client with this issue is using a CRM, because it made me realize the error. I did not have this problem before 2021. MAJOR issue, Quickbooks! I am not even going to waste my time with Quickbooks support chat, as it obviously has only caused more issues for anyone who has attempted. 

Same exact issue with our company. My sales tax liability report and my profit and loss statement show different amounts for Total Sales. I waste my time with Quickbooks support chat, nothing they can help me, always ask me question, not answer my question. 

I spent some time investigating and discovered QBO is not including invoices that have no taxable amounts included in the invoice.  

Same issue here.  I just wasted 3 hours trying to figure out what the hell QBO did with the simple report that we ran on desktop for 8 years with no problems.  What are we all paying for if Intuit can't fix an accounting problem that they have created.  Not to mention all of the other inadequacies that QBO is falling short on.  Get with it and start hearing your customers or their will be none left.

I am having the same issue with the STLR matching the gross sales for a month in accrual or cash basis.

The non-taxable sales are not reporting to the STLR at all.  I simply subtract taxable sales from my gross income to arrive at NT sales.  Not perfect I know, but I was on with the QBO team for 3 hours yesterday and they tried to help me with the other work-a-rounds.  They escalated the issue and I will now add my name to this issue.  Any new thoughts?

I am so frustrated with Quickbooks online sales tax liability.  I have been with QuickBooks for over 15 years and switched to QuickBooks Online.  I wish I have never changed.  

I also do not understand why non-taxable sales is not included like it is on the desktop version.  Our state of Ohio requires us to note non-taxable sales.  This is something I have to do manually now.

My sales tax liability amount isn't correct either and  I have no clue why it is messed up.  

When I have time I am definately switching back to Quickbooks desktop!!

---

@Rasa-LilaM wrote:

Thanks for following up on this thread, Jevans.

As mentioned by my peers, this unexpected behavior is already being worked on by our engineers. Rest assured, this is taken with utmost urgency and they’re working towards finding a permanent solution.

To add your company to the investigation, you’ll have to sign up for the list of affected users. This task requires the collection of personal data for account verification. The Community is a public forum, and I’m unable to perform this task for the safety of your information.

Our QBO Care Team has tools to access your account in a secure space, so I recommend contacting them for further assistance. You’ll receive an email once there’s progress about the issue.

 

1. Click on the Help icon at the top to open the QB Assistant window.
2. From there, choose how you want to reach out to our support team: Ask a question or Talk to a human.
3. Follow the on-screen instructions to continue.
   
4. Provide this number to expedite the process: INV-40437.

Let me also share the Sales tax in QuickBooks Online guide for future reference. It contains some links about the processes you can perform such as paying the taxes, information on how to apply the tax rate to transactions, and answers to frequently asked questions.

I appreciate your patience while this is being worked on. Reach out to me anytime if you need some help working in QuickBooks. I’ll be glad to assist you further. Have a good one.

---

I understand where you're coming from, @Drhartz.

I'll ensure you can correct the sales tax amount in your report and help you run a statement for non-taxable sales.

You can run the Sales Tax Liability report to know where the discrepancy is coming from. Just click the incorrect amount to dig deeper into the associated transactions, and make some corrections from there. Let me show you how:

1. Go to the Reports menu.
2. Search for "Sales Tax Liability report." in the Find report by name field. Then, open the report.
3. Choose the correct Report period ▼ dropdown. 
4. Select the Tax Agency from the ▼ dropdown. 
5. Hit Run report.
6. Look at the Tax Amount column. Here, you can view the total tax amounts you collected from your customers. This includes totals for state rate and local tax rates (such as city, county, and/or district).
7. To get a detailed look at what you owe, select any tax amount. A transaction report opens that shows how much tax you charged in each sale, and also shows you more info, like customers, transaction dates, and tax rate.

In addition, I recommend you run the Taxable Sales Detail report. And by customizing the report, you can view non-taxable sales within a specific date. You'll just have to make sure that you filter the report correctly. To do that, follow these filters:

• Customer Taxable, to list all customers with non-taxable sales.
• Distribution Account, then All Income/Expense Accounts from the ▼ dropdown, to hide the A/R Source line on the report.
• Product/Service Taxable, then Non-Taxable from the ▼ dropdown, to show the report as Taxable Sales Detail when you run the Non-Taxable Sales Report.

Please feel free to review this article about tax adjustments: Create or delete a sales tax adjustment.

After that, you'll learn how to adjust your sales tax due if you use Automated sales tax in QuickBooks Online.

The Community has your back always. Let us know if you have further questions. Take care!

Wondering when Quickbooks will finally recognize these "workarounds" are not satisfactory to any of us who have recognized the bug in the STLR and further that all these additional steps in the workaround are costing us money.

PLUS, many, many, many QBO users who haven't realized there's a bug in the report but are using it to submit incorrect numbers to taxing authorities... does Quickbooks actually know what data is required to submit sales tax?  I'm thinking not...    though for budgeting purposes, it's great to know what tax was collected the data required by tax authorities is gross $ (before tax), non-taxable $, taxable $ and any sales $ to tax exempt....  you never actually enter the amount of tax collected and most authorities actually give a discount if your account is in good standing, for collecting and submitting their tax to them.

HOW MANY PEOPLE does it take to tell you there's a problem and what specifically the problem is before it will actually be worked on?

We need a STLR that has the full gross sales number, the non-taxable sales number, the taxable sales number, the tax amount AND sales to tax exempt customers on it.   This cannot be hard.