Phyllip Hallman Heaton, a 43-year-old resident of Washington City, Utah, has been sentenced to five months in prison and 18 months of supervised release, which includes six months of home detention. This follows his guilty plea to tax evasion charges on February 24, 2025. The sentence was handed down by U.S. District Court Judge Ann Marie McIff Allen.
Heaton, the sole owner of Zion Outfitter in Springdale, Utah, was found to have evaded taxes from 2017 to 2022 by underreporting his income to the Internal Revenue Service (IRS). He provided certified public accountants with inaccurate financial information for tax filings, leading to an underreporting of Zion Outfitter’s gross receipts and his personal taxable income. This resulted in Heaton evading at least $1.9 million in income tax.
In addition to imprisonment, Heaton has been ordered to pay a $95,000 fine and $1,947,906.79 in restitution. The restitution amount was paid in full at the time of sentencing.
Acting U.S. Attorney Felice John Viti stated: “No one can decide they are not going to pay their fair share of taxes without serious consequences.” He emphasized that Heaton’s sentence serves as a deterrent against tax evasion.
Special Agent in Charge Carissa Messick from IRS Criminal Investigation (IRS-CI), Phoenix Field Office remarked: “Deliberate actions to evade taxes is a criminal offense.” She reiterated the IRS-CI’s commitment to investigating violations of the Internal Revenue Code.
The investigation was conducted by the IRS-CI and prosecuted by Assistant United States Attorney Stephen P. Dent from the U.S. Attorney’s Office for the District of Utah.
