U.S. Attorney Jesse A. Laslovich | U.S. Department of Justice
U.S. Attorney Jesse A. Laslovich | U.S. Department of Justice
GREAT FALLS — The owner of a firearms business in Great Falls has been charged with filing false income tax returns following an undercover investigation. The investigation determined that the owner did not report 20 percent, or approximately $1.4 million, of his gross receipts, resulting in a tax loss of almost $500,000, U.S. Attorney Jesse Laslovich announced today.
A grand jury indictment filed on Aug. 1 in U.S. District Court charges Tommy Michael VanHoose, 66, with five counts of submitting a false tax return. If convicted, VanHoose faces a maximum penalty of three years in prison, a $250,000 fine, and one year of supervised release on each count.
A summons was issued for VanHoose to appear for arraignment on Sept. 10 before U.S. Magistrate Judge John T. Johnston in Great Falls.
An indictment is only an accusation; a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
“The indictment alleges VanHoose skimmed cash from his firearms business and did not report 20 percent of his gross receipts to the IRS,” said U.S. Attorney Laslovich. “After a thorough investigation conducted by the IRS, we allege VanHoose’s own statements to an undercover agent were accurate.”
The indictment states that VanHoose owned and operated Highwood Creek Outfitters LLC, a firearms distributor and shooting range in Great Falls. Through a real estate agent, he listed the business for sale at $1,750,000. An IRS undercover agent posed as a potential buyer and contacted the real estate agent in February 2023 regarding the list price. The real estate agent indicated that “[N]ot everything flows to the tax returns.” Later conversations revealed that "off the books" income would not be identified in writing but was substantial.
In May 2023, during an undercover tour of Highwood Creek Outfitters with VanHoose, he allegedly stated that he skimmed approximately $450,000 in cash and did not report 20 percent of his gross receipts to the IRS. Records obtained through a search warrant indicated that VanHoose underreported about $1,486,404 of his income from 2018 through 2022.
Additionally, when individuals purchase firearms from Highwood Creek Outfitters they must complete Bureau of Alcohol Tobacco Firearms and Explosives (ATF) Form 4473 which identifies purchased firearms by serial number. When asked how underreporting was possible given ATF tracking via Form 4473s VanHoose responded “It’s easy.” He confirmed detailing sales accurately through ATF Form 4473 but underreporting income to the IRS.
IRS agents executed a search warrant on June 14 at Highwood Creek Outfitters obtaining among other items ATF Form 4473s confirming unreported income based on actual gun prices attached to these forms indicating skimming cash.
The indictment also alleges that VanHoose sold firearms at higher prices than recorded; gave or sold firearms without recording transactions; and lied to his accountant by providing incomplete records to underreport income.
The U.S Attorney’s Office is prosecuting this case while IRS Criminal Investigation conducted it.
PACER case reference: No:24-60
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