Alan, I just now contacted MLS support again and spoke with a gentleman who was able to explain it so even I could understand.
The most common use of Fast Offering funds is to write a check directly to a company or organization in behalf of a member in need. For example, a check is written and sent to Ma Bell to pay for Sis. Jones' phone bill. In this case, Sis. Jones still is obligated to pay the tax on her phone bill and the church is NOT
in a position to claim an exemption for it. This holds true for any check written to pay a debt, bill, or obligation in behalf of someone else, which is the case the vast majority of the time Fast Offering funds are used.
The ONLY time the church could claim a tax exemption is if those funds were used at a store where sales tax was directly paid. For example, if Fast Offering funds were used to buy paint and supplies to paint Sis Jones' house, then and only then
a tax refund could be claimed on the purchase.
I will modify my previous statement by stating that almost
always a clerk should enter zero in the tax line for Fast Offering checks.
If you are still skeptical, please contact MLS support and discuss it at length with them. They are a great group and I truly appreciate them being there.
(As stated before, this currently only holds true for Utah and North Carolina.)