Summary
A 56-year-old supply quality engineer was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons detailed several concerns, including federal income tax debts totaling $40,828 across the 2009, 2010, 2011, and 2014 tax years.
Further financial issues included a Chapter 13 bankruptcy filing in approximately September 2016, which was dismissed around February 2017. The applicant also experienced a mortgage foreclosure around 2016 on a $448,867 mortgage. Additionally, the applicant was not current on vehicle payments and owed delinquent debts to a city for $2,503, a county for $1,765, and a school district for $4,727. One debt was noted as paid for $80.
Despite some mitigating circumstances being considered, the judge determined that the applicant had not made sufficient progress in resolving her delinquent debts. Consequently, the financial considerations security concerns were not adequately mitigated, leading to the denial of eligibility for access to classified information.
Why the Applicant Was Denied
- The applicant has unresolved debts including delinquent federal income taxes and local taxes.
- The applicant did not make sufficient progress resolving her delinquent debts.
- Financial considerations security concerns are not mitigated.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- 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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant and her spouse had multiple periods of unemployment.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide sufficient evidence of progress resolving her delinquent federal income tax debt.
- 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 establish that she had made arrangements with the IRS to resolve her tax debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines.”
Procedural Posture
- SOR issuedJul 3, 2018
- Answer filedSep 26, 2018
- Hearing heldFeb 8, 2019via video teleconference
- Decision dateApr 23, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of Mitigating Circumstances in Financial Cases