Washington County retailer sentenced to federal prison for tax evasion, ordered to pay over $2M

The second floor of 5th District Court in St. George. A southern Utah business owner has been sentenced to federal prison for tax evasion.

The second floor of 5th District Court in St. George. A southern Utah business owner has been sentenced to federal prison for tax evasion. (Cody Blowers, St. George News)


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ST. GEORGE — A southern Utah business owner has been sentenced to federal prison.

On May 22, Phyllip Hallman Heaton, 42, of Washington, Washington County, was sentenced on one federal count of evasion of assessment of income tax during a hearing held at U.S. District Court in St. George.

Heaton, the owner and operator of Zion Outfitter, an outdoor retail and rental shop near the entrance of Zion National Park, was indicted after investigators with the IRS determined that between 2018 and 2022, he underreported Zion Outfitter's gross receipts. This ultimately resulted in Heaton evading at least $1.9 million of income tax, as outlined in federal court records.

The defendant was indicted on five counts of evading the assessment of income tax and five counts of fraud and making false statements. The nine remaining charges were dismissed under the terms of a stipulated agreement.

Heaton was ordered to pay some $1.9 million in back taxes and a $95,000 fine within 24 hours of the sentencing hearing — totaling more than $2 million.

Read the full article at St. George News.

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