Major mistake on taxes?

Question

When doing our 2009 taxes, I made a major error. I utilized a deduction which we were not eligible for (private mortgage insurance). We don't even have private mortgage insurance (we have a VA guarantee, not the same thing).  I realize this was a colossal mistake on my part, but it was an honest mistake. I was advised it was something else altogether. Reviewing our tax return for something else brought the error to light. We received our refund already. I know I need to file amended returns and repay the funds to the IRS and plan on doing this ASAP (we haven't spent the money yet). I can have it in prior to April 15th, which is good. 

My question is, will this stupidity on my part red-flag us for audits or questioning on this tax return or future returns? I guess I'm just generally concerned how the IRS will view this. It was really a stupid mistake.

browncat79 · Accepted Answer

I can't tell you how the IRS thinks but since you're paying back for an honest mistake I would put you in the honest column and less likely to be audited.  But thats just me.

I heard people who run their own businesses and people who make alot of money are most frequently audited because they have ways of hiding money and lots of it.

Helen, EA in PA · Answer

Don't sweat it.  Number one, everyone makes mistakes.  Secondly, why worry about an audit unless you are hiding something.  

Helen, EA in PA

Major mistake on taxes?

2 Answers