Why aren't certain liability accounts relieved after payment? I have a Franchise tax account that has been paid but it still shows as due

Hello there, cari2.

If you made a tax payment outside of your QuickBooks Online account, you’ll need to manually enter the payment so it’s recorded in the system and will no longer show as due. 

To do this, here's how:

1. In the left menu, click Taxes.
2. Go to the Sales tax tab.
3. From the Sales Tax Owed list, select the tax agency you're recording the payment for, then choose Record Tax Payment.
4. From the Bank Account dropdown, select the account you're making the payment from.
5. Select the Payment Date.
6. Enter the tax payment amount in the Tax Payment field.
7. When you're ready, select Record Tax Payment. 
8. If you need to print a check for the payment, check the Print a Check checkbox and then select Record Payment and Print Check.

For more information on how to handle tax payments and other tasks in the tax center, see this article: Manage sales tax payments in QuickBooks Online.

After that, you can run the Sales Tax Liability report. It provides you a detailed look at the taxes you owe and why you owe them. Also, it helps you ensure everything is accurate before you file your return to the tax agency. Just go to the Reports or Taxes menu to complete this task. 

If you have follow-up questions about recording sales tax in QuickBooks Online, let me know by leaving a comment below. I'm always here to help. Have a good one!

Thank you for your response.  This is NOT a sales tax liability or payroll tax liability.  This is a liability account setup for my annual Franchise Tax payment.  I created the Bill/Expense and recorded the payment in the vendor account, BUT the payment didn't relieve the liability.  The liability is still showing as due in the chart of accounts.  Please advise

Thank you for coming back to the Community, cari2.

I am here to provide you with the necessary support to clear the franchise tax payment in your company. To offer you the best assistance, I just need to gather additional information.

May I know if you use the Pay Bill function to pay the bill? Did you come across any issues while recording the payment? Just to clarify, are you referring to the Chart of accounts page or the vendor's Transaction List page? It'd be really helpful if you could send us a screenshot so we can have a clearer view of what happened to the transaction.

I'll be on the lookout for your response.  Thank you in advance for your assistance. Have a great day ahead, cari2.

Do make sure that the bill payment was not entered as an expense, and as a bill payment, in the Franchise tax register. If there are no duplicates showing in the register, locate the manual payment and confirm that it is categorized to the Franchise Tax liability account. When you view the Franchise register you should see the liability(what you owed), and the manual payment. They should zero out in the register if the amount owed is the same as the amount paid.