Taxonomy Term Hierarchy Not Working

Hello,

I have a very frustrating issue that I can not figure out. When I add a new taxonomy grandchild term, it does not appear in the hierarchy as it should. I previously could add them and it would work perfectly.

For instance

Before the hierarchy would work like this:

zip code
-Service
–Manufacturer

Now it is coming up like this:

zip code
service
manufacturer

This is driving me nuts, I have checked the permalink structure and don’t know what else to do.

Here is an example of how the terms are showing up when terms for a current post are called to display in hierarchy. The url structure is also different?

http://goo.gl/o9XYPg

Thanks in advance.