Prison for Under Reporting $15 Million of Income by $15 Million

Bradley T. McKouen, owner of Delta Staffing LLC in Detroit, Michigan was sentenced to 18 months in prison, 2 years supervised release and ordered to pay $319,000 in restitution. As the company was a Schedule C company, McKouen’s profits should have been filed on Schedule C of his personal returns.  In 2008, while his gross receipts were approximately $5.7 million, he reported $0 gross receipts, $0 business income, $0 taxable income and $0 income tax due. His actual taxable income was $299,000 and his tax due was $110,000. Under a plea agreement, he is also being held responsible for filing similar zero returns for 2004-2007, the total amount of unreported income of $15 million.