Outdoor Retailer Sentenced to Prison for Tax Fraud and Ordered to Pay Over $2M in Fines and Restitution

ST. GEORGE, Utah – Phyllip Hallman Heaton, 43, of Washington City, Utah, was sentenced to five months’ imprisonment and 18 months’ supervised release (including six months of home detention) after he evaded paying taxes for six years.

The sentence, imposed by U.S. District Court Judge Ann Marie McIff Allen, comes after Heaton pleaded guilty to tax evasion on February 24, 2025. In addition to his term of imprisonment, the court ordered Heaton to pay a $95,000.00 fine and $1,947,906.79 in restitution, which the defendant paid in full at the time of his sentencing hearing.

According to court documents and statements made at Heaton’s change of plea and sentencing hearings, from 2017 to 2022, Heaton evaded taxes by underreporting his income to the Internal Revenue Service (IRS). Heaton is the sole owner of Zion Outfitter, an outdoor retailer in Springdale, Utah. He managed the company and handled the finances. When tax season came, he provided certified public accountants (CPAs) with information and records to prepare tax forms to submit to the IRS. The CPAs relied on the information they received from Heaton. By underreporting Zion Outfitter’s gross receipts, Heaton ultimately underreported his taxable personal income, which resulted in Heaton evading at least $1.9 million of income tax.

“No one can decide they are not going to pay their fair share of taxes without serious consequences,” said Acting U.S. Attorney Felice John Viti of the District of Utah. “Mr. Heaton’s sentence is one such consequence and also serves as a deterrence to others by demonstrating that tax evasion comes with serious penalties from the Department of Justice.”

“Deliberate actions to evade taxes is a criminal offense,” said Special Agent in Charge Carissa Messick, IRS Criminal Investigation (IRS-CI), Phoenix Field Office. “IRS-CI remains steadfast in its mission to serve the American public by investigating potential criminal violations of the Internal Revenue Code in a manner that fosters confidence in the tax system and compliance with the law.”

The case was investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI).

Assistant United States Attorney Stephen P. Dent of the U.S. Attorney’s Office for the District of Utah prosecuted the case.