Following up here....Per Netsuite incase someone else runs into this.
Enhancement#410047 Transaction Saved Search> Available Filters tab> Add Class/Department> Show Inactive Classes/Departments on the Class List
As an alternative solution, you may instead add the "Class : Inactive" or "Department : Inactive" field in the Available Filters tab to be able to filter the results to show records with inactive Class/Department. Kindly note that these fields are join fields which can be accessed by selecting the "Class Fields..." or "Department Fields...".