oh my god, I am experiencing similar issues. non-taxble items are not flagged correctly and I just cant match up the taxable sales detail report ( which I also supposedly customize that for non-taxable), with our profit and loss and the tax liability report. There is a glitch there, I have been wasting alot of hours and still can not figure it out.

in my case I see some items perfectly showing up and some are skipped on some reports. I am planning to call Quickbooks on monday. Wish me luck? after reading this thread, I am already dreading it.//