The owner of a popular outdoor outfitter at the entrance to Zion National Park was indicted this week for allegedly evading $1.8 million in taxes.
Phyllip Heaton faces five counts of tax evasion, plus five counts of fraud, for allegedly underreporting sales at his store, Zion Outfitter, according to a news release from the Department of Justice. A federal grand jury indicted him Tuesday.
Federal prosecutors allege Heaton knowingly underreported more than $5.4 million in sales between 2018 and 2022, according to court documents. He allegedly gave his tax preparers profit and loss statements that claimed the store earned less than it did, according to the indictment, and then signed off on tax returns he knew were false.
In 2021, for example, Heaton allegedly claimed on tax documents that Zion Outfitter made $10.2 million in gross sales, while Justice Department officials say the business actually brought in $12.2 million, according to court documents.
The alleged scheme meant Heaton evaded nearly $2 million in income taxes, according to the Justice Department.
Heaton’s attorney did not respond to a request for comment.
Zion Outfitter is a popular stop for visitors to Zion National Park. The shop in Springdale is a stone’s throw away from the park’s entrance and rents hiking equipment for hiking the Narrows — like neoprene boots, wetsuits and hiking sticks. It also rents bikes, sells outdoor gear and apparel, and offers showers for $4 a token (one token is good for five minutes) during business hours.
The outfitter has hundreds of reviews on Google, Trip Advisor and Yelp, with most praising the rental prices and knowledgeable staff.
Heaton is scheduled to appear in court in St. George on October 28.
Shannon Sollitt is a Report for America corps member covering business accountability and sustainability for The Salt Lake Tribune. Your donation to match our RFA grant helps keep her writing stories like this one; please consider making a tax-deductible gift of any amount today by clicking here.