Summary
A 58-year-old federal contractor employee was granted a security clearance despite allegations under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited the applicant's failure to timely file federal income tax returns for 2011, 2014, and 2016, and state returns for 2013 and 2014. Additionally, the applicant was alleged to have twice failed to adhere to court-ordered alcohol abstinence in 2015 and to have falsified his 2015 Security Clearance Application by answering "No" to questions regarding tax filings.
The judge determined that the applicant's financial difficulties were largely attributable to medical issues, which were considered circumstances beyond his control. The applicant demonstrated responsibility by filing all overdue federal tax returns and paying all federal taxes owed. He also made arrangements to address his state tax obligations.
Ultimately, the judge applied mitigating conditions, finding that the applicant had taken responsible steps to rectify his tax situation and complied with payment agreements. Based on these actions and the context of his financial issues, the security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant filed all overdue tax returns and paid all federal taxes owed.
- The applicant's financial issues were largely due to circumstances beyond his control, including medical problems.
- The applicant demonstrated responsibility by complying with tax obligations and making arrangements for state taxes.
Conditions Referenced
- AG ¶ 19 (c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19 (f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20 (a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20 (b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20 (g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for access to classified information may be granted "only upon a finding that it is clearly consistent with the national interest to do so."”
Procedural Posture
- SOR issuedJul 31, 2017
- Answer filedSep 15, 2017
- Hearing heldAug 29, 2018
- Decision dateApr 5, 2019
Cite For
- Mitigating Conditions for Financial Issues Under Guideline F
- Considerations for Personal Conduct Under Guideline E
- Impact of Medical Circumstances on Financial Obligations