Tommy Michael VanHoose, the owner of Highwood Creek Outfitters LLC in Great Falls, has found himself in hot water after being charged in federal court with filing false income tax returns. The charges stem from an undercover investigation that revealed VanHoose failed to report approximately $1.4 million of his gross receipts, resulting in a tax loss of nearly $500,000.
According to U.S. Attorney Jesse Laslovich, a grand jury indictment in U.S. District Court has charged VanHoose with five counts of submitting a false tax return. The indictment alleges that VanHoose skimmed cash from his firearms business and did not report 20 percent of his gross receipts to the IRS, leading to a significant underpayment of income taxes to the United States.
VanHoose, who owned and operated Highwood Creek Outfitters LLC, listed the business for sale for $1,750,000 through a real estate agent. An undercover IRS agent posing as a potential buyer inquired about the list price, and the real estate agent hinted that not all income was being reported on tax returns.
During a tour of Highwood Creek Outfitters with the undercover agent, VanHoose admitted to skimming approximately $450,000 in cash and not reporting 20 percent of his gross receipts to the IRS. This information, coupled with records obtained through a search warrant, revealed that VanHoose had underreported about $1.4 million of his income for tax years 2018 through 2022.
The indictment further alleges that VanHoose engaged in various deceptive practices, such as selling firearms for higher prices than recorded in the business’s point of sales system, failing to document transactions, and providing incomplete records to his accountant to underreport income to the IRS.
Following the execution of a search warrant at Highwood Creek Outfitters, VanHoose expressed surprise at the investigation, stating that the margins in the gun business were not as high as alleged by the IRS. He also mentioned that his shop had a good relationship with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, attributing the scrutiny to the types of firearms they carried.
Despite the charges against him, VanHoose remains adamant about his shop’s compliance with regulations, emphasizing the importance of following the law in the firearms industry. A rally in support of VanHoose was held shortly after his business was searched, indicating a level of community backing for the embattled business owner.
If convicted, VanHoose, 66 years old, could face up to three years in prison, a $250,000 fine, and one year of supervised release on each count. A summons has been issued for VanHoose to appear for arraignment before U.S. Magistrate Judge John Johnston in Great Falls on September 10.
It is essential to remember that an indictment is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. The case against Tommy Michael VanHoose serves as a reminder of the consequences of tax evasion and the importance of accurate financial reporting.