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 for tax evasion. The sentence includes six months of home detention. U.S. District Court Judge Ann Marie McIff Allen handed down the sentence after Heaton pleaded guilty on February 24, 2025.
Heaton was also ordered to pay a $95,000 fine and restitution amounting to $1,947,906.79, which he settled at his sentencing hearing. From 2017 to 2022, Heaton underreported his income to the Internal Revenue Service (IRS), resulting in the evasion of at least $1.9 million in taxes.
Heaton is the sole owner of Zion Outfitter, an outdoor retail business located in Springdale, Utah. He managed both the company and its finances. During tax season, he provided certified public accountants with records for tax preparation but failed to report all gross receipts from Zion Outfitter.
Acting U.S. Attorney Felice John Viti stated that "no one can decide they are not going to pay their fair share of taxes without serious consequences," highlighting that Heaton's sentence serves as a deterrent against tax evasion.
Special Agent in Charge Carissa Messick from IRS Criminal Investigation (IRS-CI) emphasized that "deliberate actions to evade taxes is a criminal offense" and reiterated 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.
