Good afternoon, @Carol Flores. 

Thanks for chiming in on this thread. Allow me to give you some information on this subject. 

I'll pass along your feedback regarding the Projects feature (to have the customer's tax exempt status carry over to the transactions in their project). You can check out our Blog site to keep up with what's new in the product. 

I do suggest reaching out to AvaTax's support team so they can look into ways to get the tax exempt status to sync with QBO. Below is a screenshot of how you can get it in touch with them: 

Please feel free to post a comment if you have any other questions. Take care!