Summary
A 45-year-old married man with two children was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from over $32,000 in delinquent federal and state income taxes, specifically including $4,540 in past-due state income taxes for 2012, 2013, and 2015. Additionally, his home mortgage was approximately $65,697 past due.
Disqualifying conditions under Guideline F were raised, including AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), and AG ¶ 19(f). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(g) were applied, they were not sufficient to overcome the concerns.
Despite filing for Chapter 13 bankruptcy, the applicant failed to provide sufficient evidence of efforts to resolve his financial issues or demonstrate rehabilitation. The judge concluded that the ongoing financial irresponsibility raised serious concerns about the applicant's reliability and trustworthiness, leading to the denial of his security clearance.
Why the applicant was denied
- Applicant owes over $32,000 in delinquent federal and state income taxes and significant mortgage debt.
- He failed to provide sufficient evidence of efforts to resolve his financial issues or demonstrate rehabilitation.
- The judge found ongoing financial irresponsibility raised serious concerns about the applicant's reliability and trustworthiness.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial irresponsibility is ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not claim that his debts arose from circumstances beyond his control.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingApplicant offered no evidence of effective financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsApplicant failed to demonstrate substantial progress toward resolution of his debts.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedApplicant did not provide evidence of compliance with tax repayment agreements.
Key rule quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural posture
- SOR issuedJun 29, 2017
- Answer filedJul 25, 2017
- Hearing held—Decided without a hearing
- Decision dateJan 4, 2019
Cite for
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Rehabilitation in Financial Matters
- Ongoing Financial Issues Impacting National Security Eligibility