ISCR Case 06-26675

Case Headnote

ISCR Case No. 06-26675

grantedFeb 26, 2008· Hon. Matthew E. Malone· hearing

Summary

A 58-year-old painter employed by a defense contractor was subject to a security clearance review under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). Allegations included failing to file tax returns, having outstanding tax debts, and providing false information on a Questionnaire for National Security Positions (QNSP). Specifically, the applicant was alleged to have omitted an assault and battery charge from March 2003, failed to disclose a federal tax lien, and not reported debts over 90 or 180 days past due, including approximately $2,050 owed to the IRS for tax years 1998, 1999, and 2002.

Further financial concerns involved unfiled federal tax returns for 1989, 1990, and 1991, late filings for other years, and a federal tax lien filed in July 1994 for approximately $33,069.54 covering tax years 1987 through 1992. Additionally, the applicant filed late for tax years 1998, 1999, and 2000, with an outstanding debt of approximately $849.14 for those years as of July 2007.

Despite these allegations, the judge found no evidence that the applicant intentionally falsified information on his security questionnaire. The applicant had resolved his tax issues, was in compliance with IRS requirements at the time of the hearing, and was making payments on his remaining tax debt, with the primary tax lien having expired. Consequently, the judge concluded that the applicant's conduct did not pose an unacceptable risk, and his security clearance was GRANTED.

Why the Applicant Prevailed

The judge found no evidence that the applicant intentionally falsified his security questionnaire responses.
The applicant had resolved his tax issues and was in compliance with IRS requirements at the time of the hearing.
The tax lien against the applicant had expired, and he was making payments on his remaining tax debt.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control

Key Rule Quoted

“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedJul 13, 2007
Answer filedOct 3, 2007
Hearing heldDec 14, 2007
Decision dateFeb 26, 2008

Cite For

Resolution of Personal Conduct Allegations Under Guideline E
Mitigation of Financial Issues Under Guideline F
Consideration of the Whole Person Concept in Security Clearance Decisions

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

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
1.a	Applicant lied when he answered “no” to QNSP question 23, which is purported to have elicited information about his arrest record, thus omitting the fact he was charged in March 2003 with assault and battery.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Criminal Conduct	Denied	—	—	—
1.b	Applicant lied when he answered “no” to QNSP question 27, which is purported to have elicited information regarding whether Applicant had any tax liens against him in the preceding seven years, thus omitting the fact he had a federal tax lien against him.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	—	—
1.c	Applicant lied when he answered “no” to QNSP question 28, which is purported to have elicited information about whether Applicant owed any debts greater than 180 days past due in the last seven years, or whether he was then more than 90 days past due on any debt, thus omitting again the fact he had a federal tax lien against him.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	—	—
1.d	You falsified material facts on a Questionnaire for National Security Positions, you caused to be transmitted on or about February 24, 2006, in response to “Section 28. Your Financial Delinquencies. a. In the last 7 years, have you been over 180 days delinquent on any debt(s)?; b. Are you current over 90 days delinquent on any debt(s)?” You deliberately failed to disclose that you were indebted to the Internal revenue Service for back taxes, interest and penalties for tax years 1998, 1999, and 2002, totaling approximately $2,050 in July 2006.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

Applicant lied when he answered “no” to QNSP question 23, which is purported to have elicited information about his arrest record, thus omitting the fact he was charged in March 2003 with assault and battery.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Criminal Conduct

Denied

—

1.b

Applicant lied when he answered “no” to QNSP question 27, which is purported to have elicited information regarding whether Applicant had any tax liens against him in the preceding seven years, thus omitting the fact he had a federal tax lien against him.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

1.c

Applicant lied when he answered “no” to QNSP question 28, which is purported to have elicited information about whether Applicant owed any debts greater than 180 days past due in the last seven years, or whether he was then more than 90 days past due on any debt, thus omitting again the fact he had a federal tax lien against him.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

1.d

You falsified material facts on a Questionnaire for National Security Positions, you caused to be transmitted on or about February 24, 2006, in response to “Section 28. Your Financial Delinquencies. a. In the last 7 years, have you been over 180 days delinquent on any debt(s)?; b. Are you current over 90 days delinquent on any debt(s)?” You deliberately failed to disclose that you were indebted to the Internal revenue Service for back taxes, interest and penalties for tax years 1998, 1999, and 2002, totaling approximately $2,050 in July 2006.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	You failed to file your Federal Income Tax Returns for tax years 1989, 1990, and 1991, and filed late your Federal Income Tax Returns for tax years 1987, 1988, 1992, and 1993.	For Applicant	Tax Filing Failure	Admitted	(g) unexplained affluence	—	—
2.b	On July 19, 1994, the Internal Revenue Service filed a federal tax lien against you for the approximate amount of $33,069.54 for tax years 1987 through 1992. As of July 3, 2007, this debt had not been paid. $33,069	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (g) unexplained affluence	—	Claimed Debt Paid in Full
2.c	You filed late your Federal Income Tax Returns for tax years 1998, 1999, and 2000.	For Applicant	Tax Filing Failure	Admitted	(g) unexplained affluence	—	—
2.d	You are indebted to the Internal Revenue Service in the approximate amount of $849.14 for tax years 1998 through 2000. As of July 9, 2007, this debt had not been paid. $849	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Payment Plan with IRS

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

You failed to file your Federal Income Tax Returns for tax years 1989, 1990, and 1991, and filed late your Federal Income Tax Returns for tax years 1987, 1988, 1992, and 1993.

For Applicant

Tax Filing Failure

Admitted

(g) unexplained affluence

—

2.b

On July 19, 1994, the Internal Revenue Service filed a federal tax lien against you for the approximate amount of $33,069.54 for tax years 1987 through 1992. As of July 3, 2007, this debt had not been paid.

$33,069

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(g) unexplained affluence

—

Claimed

Debt Paid in Full

2.c

You filed late your Federal Income Tax Returns for tax years 1998, 1999, and 2000.

For Applicant

Tax Filing Failure

Admitted

(g) unexplained affluence

—

2.d

You are indebted to the Internal Revenue Service in the approximate amount of $849.14 for tax years 1998 through 2000. As of July 9, 2007, this debt had not been paid.

$849

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Payment Plan with IRS

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION