Summary
A 54-year-old retired Army veteran was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons cited the applicant's failure to timely file federal income tax returns for tax years 2011-2014, multiple delinquent debts placed for collection, and a charged-off debt of $1,400. Additionally, the applicant failed to provide evidence of payment or resolution for these outstanding debts.
Disqualifying conditions related to financial irresponsibility were raised, including a history of not meeting financial obligations and an inability to satisfy debts. While mitigating conditions were considered, such as the debts not being recent and the applicant's expressed intent to resolve them, these were ultimately insufficient.
The denial was based on the applicant's failure to file the specified tax returns and the lack of evidence demonstrating resolution or compliance with the delinquent debts. The applicant also did not respond to the Government's evidence or provide documentation to support claims of financial responsibility, leading to concerns about reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant failed to file federal income tax returns for tax years 2011-2014.
- The applicant acknowledged multiple delinquent debts but did not provide evidence of resolution or compliance.
- The applicant did not respond to the Government's evidence or provide documentation to support claims of financial responsibility.
Conditions Referenced
- 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)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe applicant's financial issues were recent and ongoing.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the CircumstancesThe applicant did not demonstrate responsible actions to address financial issues.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to provide evidence of good-faith efforts to resolve debts.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant did not provide evidence of arrangements with the IRS.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedAug 22, 2017
- Answer filedOct 23, 2017
- Hearing held—Case decided on written record.
- Decision dateDec 28, 2018
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Importance of Providing Corroborating Evidence for Financial Claims
- Burden of Proof Lies with the Applicant to Demonstrate Financial Responsibility