Summary
A 51-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several issues, including the applicant's failure to pay federal income taxes for 2014 and 2015, totaling approximately $27,913, and failure to file federal tax returns for 2013, 2014, and 2015. Additionally, he failed to pay state income taxes for 2013, 2014, and 2015, amounting to $4,088.
Personal conduct issues included an August 2016 DUI arrest, which resulted in a guilty plea to a lesser offense. This led to his employment termination in January 2017 for failing to report the arrest as required by his employer's security rules.
Despite some efforts to address his tax obligations, the applicant failed to resolve approximately $13,580 in federal tax debts as of August 2018 and did not establish a payment plan with the IRS. The judge concluded that the applicant's financial irresponsibility, coupled with his DUI and failure to report it, demonstrated insufficient judgment and reliability, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant failed to resolve significant federal tax debts totaling approximately $13,580 as of August 2018.
- The applicant did not establish a payment plan with the IRS for his federal tax debts.
- The applicant's DUI arrest and failure to report it to his employer raised serious questions about his judgment and reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File Annual Federal, State, or Local Income Tax Returns
- AG ¶ 16(c)appliedCredible Adverse Information in Several Adjudicative Issue Areas
- AG ¶ 16(d)appliedCredible Adverse Information That Is Not Explicitly Covered Under Any Other Guideline
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingThe applicant has not received financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay CreditorsThe applicant has not initiated a payment plan for his federal tax debt.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax AuthorityThe applicant has not made arrangements with the IRS to pay his federal tax debt.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedSep 21, 2017
- Answer filedNov 11, 2017Applicant proceeded pro se after attorney withdrawal.
- Hearing heldAug 16, 2018Hearing was adjourned to allow applicant to review evidence.
- Decision dateFeb 15, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Tax Debts Under Guideline F
- Impact of DUI Arrest on Security Clearance Eligibility Under Guideline E
- Failure to Demonstrate Mitigating Conditions for Financial Irresponsibility