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ISCR Case 18-01875 — CASE

ISCR Case 18-01875denied

Case Headnote

ISCR Case No. 18-01875

deniedJul 29, 2019· Hon. Michael Y. Ra'anan· appeal

Summary

The applicant, representing himself, was denied a trustworthiness designation under Guideline F (Financial Considerations) due to significant tax delinquencies. The denial was affirmed by the appeal board.

Key issues included over $40,000 in federal tax liens and a failure to file tax returns in a timely manner. While the appeal board noted an erroneous finding regarding the removal of one tax lien, this did not alter the overall decision. The judge's analysis of the applicant's broader tax issues and the lack of timely resolution were deemed sufficient to support the denial.

The applicant's arguments regarding his job history and good security record were considered but did not overcome the presumption that all evidence was weighed. Ultimately, the persistent financial issues, specifically the substantial tax liens and unfiled returns, led to the denial of the trustworthiness designation.

Why the Applicant Was Denied

The applicant had over $40,000 in federal tax liens and failed to file tax returns in a timely manner.
The judge found that the applicant's claims of job history and good security record did not overcome the presumption that all evidence was considered.

Conditions Referenced

Disqualifying

F.1raisedFinancial Considerations

Key Rule Quoted

“The general standard is that a clearance may be granted only when ‘clearly consistent with the interests of the national security.’”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedOct 5, 2018
Answer filed—Applicant represented himself.
Hearing heldMay 17, 2019
Decision dateJul 29, 2019Appeal decision affirmed.

Cite For

Affirmation of Denial Based on Significant Tax Delinquencies Under Guideline F
Consideration of Non-alleged Conduct in Assessing Trustworthiness
Presumption That Judges Consider All Evidence in the Record

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

APPEAL

SYNOPSIS

KEYWORD: Guideline F DIGEST: Applicant challenges a finding to the effect that there is no evidence that his tax liens have been removed, pointing to a tax transcript contained in the record showing that a lien had in fact been removed. Although the challenged finding is erroneous, the Judge’s analysis focused on the extent of Applicant’s tax delinquencies and on the recency of his efforts to address them. Accordingly, the error is harmless, in that it did not likely affect the overall decision. Adverse decision affirmed. CASENO: 18-01875 DATE: 07/29/2019 DATE: July 29, 2019 ) In Re: ) ) ----------------------- ) ADP Case No. 18-01875 ) ) Applicant for Public Trust Position ) )

APPEAL BOARD DECISION

APPEARANCES

FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Pro se The Department of Defense (DoD) declined to grant Applicant a trustworthiness designation. On October 5, 2018, DoD issued a statement of reasons (SOR) advising Applicant of the basis for that decision–trustworthiness concerns raised under Guideline F (Financial Considerations) of Department of Defense Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). Applicant requested a hearing. On May 17, 2019, after the hearing, Defense Office of Hearings and Appeals (DOHA) Administrative Judge Robert Robinson Gales denied Applicant’s request for a trustworthiness designation. Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30. The SOR, as amended at the hearing, alleged that Appellant had over $40,000 in Federal tax liens, that he failed to file his Federal tax returns in a timely fashion for several years, and that he failed to pay Federal income taxes as owed for several years. The Judge found against Applicant on all of the SOR allegations. In addition, he found that Applicant has failed to file his 2002 Federal tax return, which was not alleged in the SOR. He considered this non-alleged conduct on the issues on mitigation, rehabilitation, credibility, and the whole-person factors. Decision at 3, n.4. Applicant challenges a finding to the effect that there is no evidence that his tax liens have been removed, pointing to a tax transcript contained in the record showing that a lien had in fact been removed. Although the challenged finding is erroneous, the Judge’s analysis focused on the extent of Applicant’s tax delinquencies and on the recency of his efforts to address them. Accordingly, the error is harmless, in that it did not likely affect the overall decision. Applicant cites to his job history and good security record. He has not rebutted the presumption that the Judge considered all of the evidence in the record. See, e.g., ADP Case No. 18-00166 at 2 (App. Bd. Nov. 29, 2018) for the proposition that a Judge is presumed to have considered all of the evidence in the record. The Judge examined the relevant evidence and articulated a satisfactory explanation for the decision. The decision is sustainable on this record. “The general standard is that a clearance may be granted only when ‘clearly consistent with the interests of the national security.’” Department of the Navy v. Egan, 484 U.S. 518, 528 (1988). See also Directive, Encl. 2, App. A ¶ 2(b): “Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

ORDER

The Decision is AFFIRMED. Signed: Michael Ra’anan Michael Ra’anan Administrative Judge Chairperson, Appeal Board Signed: James E. Moody James E. Moody Administrative Judge Member, Appeal Board Signed: James F. Duffy James F. Duffy Administrative Judge Member, Appeal Board