diff --git a/src/components/TransactionItemRow/index.tsx b/src/components/TransactionItemRow/index.tsx
index fb58fc366456..6d1764aef4bc 100644
--- a/src/components/TransactionItemRow/index.tsx
+++ b/src/components/TransactionItemRow/index.tsx
@@ -591,7 +591,8 @@ function TransactionItemRow({
                 const hasConvertedAmount = transactionItem.convertedAmount != null;
                 // Offline expenses don't have a BE-computed convertedAmount yet — fall back to the unconverted
                 // amount in the transaction's own currency so users don't see a misleading $0.00 placeholder.
-                const totalAmount = hasConvertedAmount ? getConvertedAmount(transactionItem, isFromExpenseReport, false, true) : getAmount(transactionItem, isFromExpenseReport, false, true);
+                // Pass isFromExpenseReport so IOU reports stay positive while expense reports get NewDot's signed display.
+                const totalAmount = hasConvertedAmount ? getConvertedAmount(transactionItem, isFromExpenseReport) : getAmount(transactionItem, isFromExpenseReport);
                 // When converted, display in the report's output currency; otherwise use the transaction's own currency.
                 const totalCurrency = hasConvertedAmount ? (report?.currency ?? policy?.outputCurrency ?? getCurrency(transactionItem)) : getCurrency(transactionItem);
                 return (
diff --git a/src/libs/SearchUIUtils.ts b/src/libs/SearchUIUtils.ts
index d5899a78f7f5..13a13bcb0cb1 100644
--- a/src/libs/SearchUIUtils.ts
+++ b/src/libs/SearchUIUtils.ts
@@ -5320,9 +5320,11 @@ function getColumnsToShow({
                 columns[CONST.SEARCH.TABLE_COLUMNS.CARD] = true;
             }
 
-            // If the transaction has any tax info (code, value, or amount),
-            // show both TAX_RATE and TAX_AMOUNT columns. Zero is valid tax data.
-            const hasTaxInfo = !!transaction.taxCode || transaction.taxAmount != null || (transaction.taxValue !== undefined && transaction.taxValue !== '');
+            // Show both TAX_RATE and TAX_AMOUNT when the transaction has a meaningful tax signal.
+            // Use truthy checks so default/no-tax values (0, null, '', undefined) don't trigger
+            // false positives — buildOptimisticTransaction seeds taxAmount: 0 on every new draft,
+            // which would otherwise flash tax columns on for offline-pending transactions.
+            const hasTaxInfo = !!transaction.taxCode || !!transaction.taxAmount || !!transaction.taxValue;
             if (hasTaxInfo) {
                 columns[CONST.SEARCH.TABLE_COLUMNS.TAX_RATE] = true;
                 columns[CONST.SEARCH.TABLE_COLUMNS.TAX_AMOUNT] = true;