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Level 3

Sales tax QBO; remove state

A client sells products in multiple states. In some they have to file sales tax and in others they don't.  The client inadvertently denoted an invoice issued to a Florida shipping address as taxable, even though they are (apparently) not obligated to file there yet. Now I can't get into the Sales Tax Center to issue reports to the tax accoutant (not me!) as the program Will. Not. Let. Me. In. until I note how often they file  Florida sales tax returns and "we don't" isn't an option.  (We are having the same issue with multiple states; Florida is just one of many.  :(

 

How can I get into the settings and denote a state as one in which the client does not file?  For that matter, if a client did file in a state and then went under the threshold so they don't have to file anymore (e.g. they close a branch); how can you update settings for that?

 

Thanks in advance?  We are getting crazy report results as a result of this snafu.

 

Also, if anyone has any useful invoicing and/or customer set-up tips and tricks for ensuring snafu-free sales tax returns, would be delighted if you would share and I'll share with my client.

5 Comments
QuickBooks Team

Sales tax QBO; remove state

I can see the importance of having a correct sales tax report in your client's QuickBooks Online (QBO) account, @CFOSecrets. That's why I'm here to share details on the actions you need to take care of this.

 

Based on your complete description of the issue above, it seems that your client is now using the automated sales tax feature in QBO. The system automatically calculates sales tax based on where and what they sell. The program already knows the tax rules for each state. With this, there isn't an option to update the sales tax settings and no need to denote a state as one in which the client does not file.

 

To address your concern about getting into the Sales Tax Center page, I've checked here on my end that there's an ongoing investigation about it. Rest assured that our product engineers are actively working to get this issue fixed. 

 

In the meantime, you can perform some basic troubleshooting steps to isolate the issue. Then, pull up the Sales Tax Liability report from the Reports menu. This is to create a summary of your taxable and non-taxable sales, plus the total sales tax you collected from customers. Here's how:

  1. Go to the Reports menu.
  2. Search for "Sales Tax Liability". Then, select the report.
  3. Set the Report period.
  4. Select the Tax Agency. Then, select All or choose just one tax agency.
  5. Click Run report.

 

I want to ensure you're in the loop about the investigation's status and its fix. With this, I recommend contacting our QuickBooks Online Support team. This way, you'll receive updates via email. Please provide the INV-49402 to our representative as your reference. 

 

Additionally, to ensure snafu-free sales tax returns, I'd recommend you have your customers' correct tax status. This way, you'll be able to identify if there's a need to implement sales tax when creating their invoices. You can refer to this article's Step 4 and 5 sections for the complete details: Set up and use automated sales tax in QuickBooks Online. It also includes helpful links to further guide you with the process.

 

Once everything is all set, you can file your sales tax return and record your tax payment in QBO. For the step-by-step guide, kindly check out this article: File your sales tax return and record tax payment in QuickBooks Online. It also contains instructions on how to check your filing status.

 

Please let me know if you have other concerns. I'm just around to help. Take care always.

Level 3

Sales tax QBO; remove state

posted twice by accident...

Level 3

Sales tax QBO; remove state

The problem is that we can't get *out* of the automated feature (which is screwing up our reports every freaking month now) and, as I said, we can't get into it either. So we keep on getting reports with random tax amounts attached to invoices for which we don't file (we fall under the threshold) and you just can't get to the detail (and I've tried).  I literally spent two hours doing pivot tables last month and examining individual transactions trying to figure out where some random amounts came from.  The client was not happy to be charged for that!

 

I'll be advising future clients not to use the automated feature as it's too buggy and draconian, but is there anything I can do to turn off and move to manual apart from literally giving up in despair and moving to a new program or trying to set up a new version of QB's and hoping that a clean slate will to the trick?  

 

From what I've seen in the support pages to date, "QB is aware of the issue and is working on it" can be translated to "QB knows there is an issue because everyone and their grandmother is complaining, but the chance that they will actually fix it are pretty non-existent".  :(

Level 3

Sales tax QBO; remove state

The problem is that we can't get *out* of the automated feature (which is screwing up our reports every freaking month now) and, as I said, we can't get into it either. So we keep on getting reports with random tax amounts attached to invoices for which we don't file (we fall under the threshold) and you just can't get to the detail (and I've tried).  I literally spent two hours last month doing pivot tables and examining individual transactions trying to figure out where some random amounts came from.

 

I'll be advising future clients not to use the automated feature as it's too buggy and draconian, but is there anything I can do to turn off and move to manual apart from literally giving up in despair and moving to a new program or trying to set up a new version of QB's and hoping that a clean slate will to the trick?  

 

From what I've seen in the support pages to date, "QB is aware of the issue and is working on it" can be translated to "QB knows there is an issue because everyone and their grandmother is complaining, but the chance that they will actually fix it are pretty non-existent".  :(

Moderator

Sales tax QBO; remove state

Hello again, CFOSecrets.

 

I can see the importance of making this issue resolve. Right now, our engineers are actively working on a fix to solve this as soon as possible.

 

As for your question, if you can turn off and move to manual sales tax, the option to go back would only work the first time you switch from the new sales tax center to the old one. If you're using the manual process and tried using the automated feature, you can no longer change the Sales Tax section.

 

If you can still switch, follow below steps o get back to manual sales tax feature:

  1. In the left menu, click Taxes
  2. Go to the Sales Tax tab. 
  3. Hit Sales tax settings in the upper right corner.
  4. Scroll down to the bottom, then click Want to temporarily switch to the old tax center? Switch here.

To know more about tracking sales tax, see these articles which you may find helpful:

Let me know if you have further questions. I’m here to answer them for you. Have a good one.

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