[Due for payment 2025-12-10] [$250] TAX - Tax no longer valid error is shown after offline split

[lanitochka17]

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Version Number: 9.2.38-1
Reproducible in staging?: Y
Reproducible in production?: Y
If this was caught during regression testing, add the test name, ID and link from TestRail: #73067
Email or phone of affected tester (no customers): applausetester+ds@applause.expensifail.com
Issue reported by: Applause - Internal Team

Action Performed:

1. Sign in to ND
2. Create a workspace, enable Taxes in More features
3. Create an expense with tax
4. Go offline.
5. Click More > Split
6. Click Save

Expected Result:

Tax no longer valid error is not shown

Actual Result:

Tax no longer valid error is shown and after going back to online the error is dismissed

Workaround:

Unknown

Platforms:

Select the officially supported platforms where the issue was reproduced:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari
• MacOS: Desktop

Platforms Tested:

On which of our officially supported platforms was this issue tested:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari
• MacOS: Desktop

Screenshots/Videos

Add any screenshot/video evidence

Bug6983761_1761350456157.Screen_Recording_2025-10-25_at_2.53.42_at_night.mp4

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• Upwork Job URL: https://www.upwork.com/jobs/~021982882837897815472
• Upwork Job ID: 1982882837897815472
• Last Price Increase: 2025-11-10
• Automatic offers:
• daledah | Contributor | 109463309

Issue Owner

Current Issue Owner: @JS00001

[melvin-bot]

Triggered auto assignment to @lschurr (Bug), see https://stackoverflow.com/c/expensify/questions/14418 for more details. Please add this bug to a GH project, as outlined in the SO.

[daledah]

Proposal

Please re-state the problem that we are trying to solve in this issue.

Tax no longer valid error is shown and after going back to online the error is dismissed

What is the root cause of that problem?

We don't pass taxCode here

App/src/libs/actions/IOU.ts

Lines 13592 to 13608 in 9c3ecb2

	transactionParams: {
	amount: Math.abs(originalTransaction?.amount ?? 0),
	modifiedAmount: splitExpense.amount ?? 0,
	currency: originalTransactionDetails?.currency ?? CONST.CURRENCY.USD,
	created: splitExpense.created,
	merchant: splitExpense.merchant ?? '',
	comment: splitExpense.description,
	category: splitExpense.category,
	tag: splitExpense.tags?.[0],
	originalTransactionID,
	attendees: originalTransactionDetails?.attendees,
	source: CONST.IOU.TYPE.SPLIT,
	linkedTrackedExpenseReportAction: currentReportAction,
	pendingAction: splitTransaction ? null : CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
	pendingFields: splitTransaction ? splitTransaction.pendingFields : undefined,
	reimbursable: originalTransactionDetails?.reimbursable,
	},

So we don't have updatedTransaction.taxCode here

App/src/libs/Violations/ViolationsUtils.ts

Line 324 in 9c3ecb2

const isTaxInPolicy = Object.keys(policy.taxRates?.taxes ?? {}).some((key) => key === updatedTransaction.taxCode);

=> isTaxInPolicy is false => we push the violation here

App/src/libs/Violations/ViolationsUtils.ts

Lines 449 to 451 in 9c3ecb2

	if (isPolicyTrackTaxEnabled && !hasTaxOutOfPolicyViolation && !isTaxInPolicy) {
	newTransactionViolations.push({name: CONST.VIOLATIONS.TAX_OUT_OF_POLICY, type: CONST.VIOLATION_TYPES.VIOLATION});
	}

What changes do you think we should make in order to solve the problem?

We should pass taxCode as originalTransactionDetails?.taxCode,, with taxAmount field we should use calculateIOUAmount to calculate it

            transactionParams: {
                amount: Math.abs(originalTransaction?.amount ?? 0),
                modifiedAmount: splitExpense.amount ?? 0,
                taxCode: originalTransactionDetails?.taxCode,
                taxAmount: calculateIOUAmount(splitExpenses.length - 1, originalTransactionDetails?.taxAmount ?? 0, originalTransactionDetails?.currency ?? CONST.CURRENCY.USD, false),
                ...
            },

App/src/libs/actions/IOU.ts

Line 13592 in 9c3ecb2

transactionParams: {

App/src/libs/actions/IOU.ts

Line 13614 in 9c3ecb2

requestMoneyInformation.transactionParams = {

Note: We should check the other fields as well like billable,...

What specific scenarios should we cover in automated tests to prevent reintroducing this issue in the future?

None

What alternative solutions did you explore? (Optional)

Result:

Screen.Recording.2025-11-03.at.22.32.41.mov

Reminder: Please use plain English, be brief and avoid jargon. Feel free to use images, charts or pseudo-code if necessary. Do not post large multi-line diffs or write walls of text. Do not create PRs unless you have been hired for this job.

[nkdengineer]

🚨 Edited by proposal-police: This proposal was edited at 2025-11-03 16:54:19 UTC.

Proposal

Please re-state the problem that we are trying to solve in this issue.

Tax no longer valid error is shown and after going back to online the error is dismissed

What is the root cause of that problem?

When users split the original expense, we will build the transactionParams, it has many properties, but missed many of them like taxCode, taxAmount, billable, ... In this issue we missed taxCode and taxAmount so the error is shown. If we don't pass billable, the split expense won't have the correct billable, ...

What changes do you think we should make in order to solve the problem?

We should migrate all necessary params from originalTransactionDetails to transactionParams, so I think the safest way is to add ...originalTransactionDetails to transactionParams here and here. By doing this way, we can prevent the same issue in the future

Instead of using originalTransactionDetails, we also can check the properties of transactionParams, then get all of them from originalTransactionDetails.

transactionParams: {
taxCode: originalTransactionDetails?.taxCode,
taxAmount: calculateIOUAmount(splitExpenses.length - 1, originalTransactionDetails?.taxAmount ?? 0, originalTransactionDetails?.currency ?? CONST.CURRENCY.USD, false),
billable: originalTransactionDetails?.billable,
... and other params

What specific scenarios should we cover in automated tests to prevent reintroducing this issue in the future?

None

What alternative solutions did you explore? (Optional)

Reminder: Please use plain English, be brief and avoid jargon. Feel free to use images, charts or pseudo-code if necessary. Do not post large multi-line diffs or write walls of text. Do not create PRs unless you have been hired for this job.

[melvin-bot]

Job added to Upwork: https://www.upwork.com/jobs/~021982882837897815472

[melvin-bot]

Triggered auto assignment to Contributor-plus team member for initial proposal review - @abdulrahuman5196 (External)

[melvin-bot]

@abdulrahuman5196 Uh oh! This issue is overdue by 2 days. Don't forget to update your issues!