Odenton, Severn Businesses More Likely to be Audited

Small businesses in the Odenton and Severn area were more likely to be audited by the Internal Revenue Service than most other businesses in the county, according to a review by the National Taxpayer Advocate. 

The group reviewed confidential 2009 data from the IRS to identify clusters of tax cheats. Odenton and Severn were among 350 communities listed. 

The ratings were based on an IRS score analyzing the likelihood of an audit. The higher the score, the more likely the IRS would claim you have additional tax liability.

The study focused on sole proprietorships, which comprise about two-thirds of businesses in the United States. The Associated Press reported that small businesses may have a greater opportunity to cheat because they are more likely to deal with cash rather than wages reported to the IRS.

Sole proprietorships make up the biggest difference between tax liability and what is actually owed. The latest IRS estimate of that gap, made in 2006, was $365 billion, the Associated Press reported.

There were 39 towns or communities listed from Maryland. Odenton and Severn were the only ones from Anne Arundel County, though the community of Russett was also listed.