Summary
A 47-year-old instructional designer was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant financial issues and a lack of candor. The applicant failed to file federal income tax returns for several years, resulting in substantial delinquent debt, and did not disclose these issues on her clearance application.
Specifically, the applicant did not file tax returns from 1999 through 2005, acknowledging she owed taxes but lacked funds to pay them. Her tax problems began in 1996 with a $9,369 IRS tax lien for unpaid taxes from 1991 and 1992. When she submitted her clearance application in July 2006, she answered "no" to questions about being delinquent on accounts, despite these outstanding debts. She later listed her tax lien and three other IRS debts in a February 2007 response to DOHA interrogatories.
The judge found that the applicant deliberately concealed the nature and extent of her tax debts and issues. Her failure to file returns, the ensuing delinquent debt, and her omission of this information on her application demonstrated a lack of judgment and responsibility. The applicant's financial difficulties were recent and multiple, and she did not responsibly address them, leading to the denial of her security clearance.
Why the applicant was denied
- The applicant failed to file federal income tax returns for multiple years, resulting in significant delinquent debt.
- The applicant did not disclose her delinquent debt on her security clearance application, which was deemed a deliberate omission.
- The applicant's financial difficulties were recent and multiple, and she did not act responsibly in addressing them.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
Key rule quoted
“The government has a compelling interest in ensuring each Applicant possesses the requisite judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural posture
- SOR issuedAug 7, 2007
- Answer filedAug 16, 2007
- Hearing heldDec 10, 2007Applicant requested a continuance six days prior to the hearing, which was denied.
- Decision dateDec 31, 2007
Cite for
- Denial of Clearance Based on Failure to File Tax Returns Under Guideline F
- Deliberate Omission of Financial Obligations Under Guideline E
- Failure to Mitigate Financial Concerns Due to Lack of Responsible Action