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Level 2

Tax Liability Report inaccurate

I pulled my sales tax liability report. It is showing large negative numbers labeled multiple taxes. This is the first time I have seen this on my report. I know my numbers are not accurate. How do I track the mapping and fix the inaccuracies with my preferences. I am finding the sales tax features of QB to be very frustrating. Don't even get me started on Online QB.


Tax Liability Report inaccurate

Glad you've found your way to the Community, Hannah-M.


I want to bring some clarifications about the negative amount showing on your Sales Tax Liability report.


The multiple taxes showing on your Sales Tax Liability report are the Group Sales Tax. QuickBooks adds this line if you are using sales tax group items in your invoices.

These are showing negative because taxable sales amount is already listed as individual tax item to make your totals work out correctly.


Here's a helpful article for more insights about the Sales Tax Liability report in QuickBooks Desktop.


Drop me a comment below if you have any other questions about Sales Tax Liability report. 

Level 2

Tax Liability Report inaccurate

QuickBooks has a limit of 50 sales tax groups so it can no longer be used correctly for many businesses in Colorado that now must and pay sales tax to EACH different district/group. I now have to stop having businesses look into QB.


Tax Liability Report inaccurate

Hello ChristyYale,


Thank you for joining this thread here in the Community. I've already responded to your post regarding the sales tax group limit in QuickBooks Desktop.


Here's the link:


Feel free to reach out to me whenever you need help with QuickBooks, such as the sales tax. The Community is always up to help.

Level 2

Tax Liability Report inaccurate

So I am still encountering problems with the sales tax liability features.

The pay sales tax liability does not map correctly. When I pay sales tax early I get a discount. So to account for this discount I "make an adjustment" however, the adjustment does not map correctly either. So I tried to make journal entries so that I can reconcile except it does not account for the balance due with my government agency "vendor" So I show the amount paid on my register but a balance due still shows on my vendor. How do I fix this? AKA the articles you send were not helpful.

Please advise.

FYI I called technical support and they said I had "errors on my file" so I paid them to "fix" the errors and the problem persists. Not sure where the disconnect is within the program.


Tax Liability Report inaccurate

Hi Hannah-M, 


Make sure you've recorded the discount in the Pay Sales Tax to get the zero amount of your vendors balance due.


Here's how:


  1. Click the Vendors menu.
  2. Choose Sales Tax to select Pay Sales Tax.
  3. Click the Adjust button.
  4. Choose the Reduce Sales Tax by option and enter the discount amount.
  5. Then, click OK.


Let me know if you need more help with QuickBooks Desktop.

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