A decided public DOHA case, shown for research, not advice or a prediction.
ISCR Case No. 11-12537.a1
Appeal BoardDecided Feb 11, 2016 · Administrative Judge Michael Y. Ra'anan · Appeal
Case headnote
Summary
The applicant, representing himself, faced security clearance denial under Guideline F due to significant tax debts totaling approximately $40,000. Despite claims of mitigating circumstances and a history of employment, the judges found the applicant's financial habits and failure to resolve tax obligations critical to the decision. The appeal board affirmed the adverse decision, emphasizing the importance of financial responsibility in security clearance evaluations.
Why the applicant was denied
- The applicant owed approximately $40,000 in unpaid taxes from multiple years.
- The applicant's financial habits demonstrated a consistent failure to pay taxes in full, including 2014 taxes due after the SOR was issued.
- The applicant's claims of mitigating circumstances were insufficient to overcome the presumption of the judge's findings.
Conditions referenced
Disqualifying
- AG ¶ 20(a) Financial Considerationsraised
Mitigating
- AG ¶ 20(c) Financial Considerationsrejected
Key rule quoted
“The general standard is that a clearance may be granted only when ‘clearly consistent with the interests of the national security.’”
Procedural posture
- SOR issued
- 2014-10-17
- Answer filed
- Hearing held
- 2015-11-21
- Decision date
- 2016-02-11
Cite for
- Importance of Financial Responsibility Under Guideline F
- Insufficient Mitigation of Tax Debts
- Affirmation of Adverse Decisions Based on Financial Habits
Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.
Appeal at a glance
The appeal concerned the denial of a security clearance based on financial considerations under Guideline F. The applicant argued that the Judge's decision was arbitrary and capricious. The Board affirmed the Judge's decision, finding no harmful error in the proceedings.
Descriptive structured reading of this decided, public Appeal Board decision: what the case says, not a prediction or advice.
Full decision
Open original PDFThe complete official text, footnotes and signatures included, is in the original PDF.
Decision text, by section
Synopsis
KEYWORD: Guideline F DIGEST: Applicant’s concern regarding the malfunction of video-teleconference equipment is overcome by the Judge’s express statement that he did not consider those pages of the transcript. Adverse decision affirmed. CASENO: 11-12537.a1 DATE: 02/11/2016 DATE: February 11, 2016 In Re: ----------
Applicant for Security Clearance ) ) ) ) ) ) ) ) ISCR Case No. 11-12537
Appearances
FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Pro se The Department of Defense (DoD) declined to grant Applicant a security clearance. On October 17, 2014, DoD issued a statement of reasons (SOR) advising Applicant of the basis for that decision–security 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 November 21, 2015, after the hearing, Defense Office of Hearings and Appeals (DOHA) Administrative Judge Francisco Mendez denied Applicant’s request for a security clearance. Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30. Applicant raised the following issue on appeal: whether the Judge’s adverse decision was arbitrary, capricious, or contrary to law. Consistent with the following, we affirm. The Judge’s Findings of Fact The Judge made the following findings pertinent to the issues raised on appeal. Applicant has been continuously employed since 2004 and has held a clearance since 2008. He owes the IRS about $40,000 for unpaid taxes from tax years 2005 through 2012 and for 2014.1 Applicant attributed his tax problems to his having spent funds on a wedding rather than his taxes, as well as to inadequate withholding. Over the past several years Applicant has entered into a number of installment agreements with the IRS. When he is unable to pay, he contacts the IRS and negotiates a new agreement. Applicant has resolved other debts alleged in the SOR. He has about $700 in discretionary income each month. His budget does not show any payments to the IRS. The Judge’s Analysis The Judge cleared Applicant of all SOR debts except those pertaining to his delinquent taxes. He noted that Applicant has been fully employed for many years but has consistently failed to pay his taxes in full. The Judge noted that Applicant did not pay his 2014 taxes, which would have become due after the receipt of the SOR. The Judge concluded that not even the possible loss of a security clearance could motivate Applicant to change his financial habits.
Discussion
Applicant cites to evidence that he has resolved other SOR debts. He also points to his latest repayment plan that, he argues, will enable him to resolve his tax delinquencies. Applicant’s argument is not sufficient to rebut the presumption that the Judge considered all of the evidence in the record. Neither is it sufficient to show that the Judge weighed the evidence in a manner that was arbitrary, capricious, or contrary to law. See, e.g., ISCR Case No. 14-06093 at 3 (App. Bd. Dec. 4, 2015). Applicant requests an opportunity to present us with additional information about his budget, payments to the IRS, and resolution of other debts. His brief also refers to matters from outside the record. We are not able to consider new evidence on appeal. Directive ¶ E3.1.29. Applicant notes that the attorney who represented him at the hearing had requested the Judge not to consider several pages of the transcript due to a malfunction with the video-teleconference equipment. The Judge stated that he did not consider these pages. Decision at 2, note 6. Therefore, any technical problem that may have occurred did not impair Applicant’s receipt of due process. The Judge examined the relevant data 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, Enclosure 2 ¶ 2(b): “Any doubt concerning personnel being considered for access to classified information 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: William S. Fields William S. Fields Administrative Judge Member, Appeal Board Signed: James E. Moody James E. Moody Administrative Judge Member, Appeal Board
Footnotes
1 The SOR alleged tax debts up through tax year 2011. The Judge stated that he was considering the non-alleged debts only in evaluating Applicant’s case for mitigation and the whole-person factors. Decision at 3, note 7.