---
title: "QB Tax Code Error"
slug: "tax-code-error"
updated: 2022-06-24T20:04:38Z
published: 2022-06-24T20:04:38Z
canonical: "help.cenpoint.com/tax-code-error"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.cenpoint.com/llms.txt
> Use this file to discover all available pages before exploring further.

# QB Tax Code Error

#### If you receive the error message below use the following steps to fix it:

![](https://cdn.document360.io/e2120353-eb2a-47e7-80e2-597dd258dbbe/Images/Documentation/1qb%20tax%20code%20error.PNG)

#### In QuickBooks Perform the following steps:

(taken from [https://quickbooks.intuit.com/community/Getting-Started/Set-up-sales-tax-in-QuickBooks-Desktop/m-p/203720](http://%20https://quickbooks.intuit.com/community/Getting-Started/Set-up-sales-tax-in-QuickBooks-Desktop/m-p/203720))

To start recording sales tax in QuickBooks Desktop, you need to turn on this feature and set up sales tax items or tax groups.

#### 1. Go to the **Edit** menu, then select **Preferences**.

#### 2. On the Preferences window, select **Sales Tax** then go to the **Company Preferences** tab.

![](https://cdn.document360.io/e2120353-eb2a-47e7-80e2-597dd258dbbe/Images/Documentation/2qb%20tax%20code%20error.PNG)

#### 3. Select **Yes** to turn on sales tax.

#### 4. Set up the sales tax items or sales tax groups for each county, district, city, etc. where you collect sales tax. Click **Add sales tax item** to do this.

- Sales tax item
- Sales tax group

#### 5. Assign sales tax codes. Sales tax codes help you track taxable and non-taxable sales and/or customers. Setting up and assigning the correct sales tax code allows you to run a report that divides the total taxable and non-taxable sales when you turn on sales tax in QuickBooks, two tax codes are automatically created: TAX(taxable) and NON(non-taxable). **TAX** is used for items and customers that you need to collect tax for. NON is used for items and customers that are exempt form tax such as non-profit organizations, out-of state sales, or items that you customers will resell.

- Set up the non-taxable status of an item
- Set up the non-taxable status of a customer
- Create specific tax codes:

#### 6. Set the Sales tax basis (Accrual or Cash). Take into account your company's accounting an preference.

#### 7. Set up your preference for paying the sales tax (Monthly, Quarterly, Annually).

#### 8. Select **OK.**

If these steps did not fix the problem, do downward facing dog yoga pose, because remember “ a downward dog a day keeps the doctor away” then give us a call at 801-478-6822 opt.4 and we’ll be happy to help you out.