Summary
A 58-year-old federal contractor's security clearance, previously revoked due to financial considerations under Guideline F, was ultimately granted. The Statement of Reasons alleged the applicant failed to file federal income tax returns for 2006-2010 and 2014-2016, failed to pay federal income taxes for 2009-2010 and 2014-2016 totaling $17,553, and failed to file state income taxes for 2014-2016. These allegations raised disqualifying conditions under AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f).
The decision to grant the clearance was based on several mitigating factors, specifically AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(g). The applicant demonstrated significant efforts to resolve her tax delinquencies, including retaining a tax attorney and entering into an installment agreement with the IRS.
Furthermore, the applicant showed a history of responsible financial management after addressing her difficulties, and her financial issues were largely attributed to circumstances beyond her control, such as her spouse's prolonged unemployment during an economic downturn.
Why the Applicant Prevailed
- The applicant took significant steps to address her tax delinquencies, including retaining a tax attorney and entering into an installment agreement with the IRS.
- She demonstrated a history of responsible financial management and compliance with her obligations after addressing her financial difficulties.
- The applicant's financial issues were largely beyond her control, stemming from her spouse's unemployment during an economic downturn.
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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial Counseling for the Problem
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“A security clearance adjudication is not a debt-collection process. Rather, an administrative judge examines the way an applicant handles his or her personal financial obligations to assess how they may handle their security obligations.”
Procedural Posture
- SOR issuedDec 6, 2017
- Answer filedJan 3, 2018
- Hearing heldSep 13, 2018mutually agreed date
- Decision dateSep 18, 2019
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond the Applicant's Control
- Significant Steps Taken to Resolve Tax Delinquencies as a Basis for Granting Security Clearance
- The Importance of Demonstrating Responsible Financial Management in Security Clearance Adjudications