Summary
A 45-year-old male applicant was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The Statement of Reasons alleged multiple delinquent debts totaling $50,418 and a failure to timely file federal income tax returns for the years 2010, 2011, 2012, 2013, and 2016.
The applicant admitted to seven of the eight alleged delinquent debts, but denied a $5,989 judgment, stating he found no evidence of it on his credit report or in County A’s judicial records. Disqualifying conditions under Guideline F, paragraphs 19(a), 19(c), and 19(f) were raised.
While mitigating conditions under paragraphs 20(a), 20(b), 20(d), and 20(g) were applied, the judge found that the applicant failed to establish justifiable reasons for his financial irresponsibility and delays in addressing his debts, which included a child-support arrearage. The applicant's failure to file tax returns for multiple years and admitted delinquent debts led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant failed to file federal income tax returns for multiple years.
- The applicant admitted to several delinquent debts totaling $50,418, including a child-support arrearage.
- The applicant did not establish justifiable reasons for his financial irresponsibility and delays in addressing his debts.
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 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 Judgment
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- 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
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedFeb 15, 2019
- Answer filedApr 1, 2019
- Hearing held—Decision made based on written record.
- Decision dateSep 23, 2019
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Timely File Federal Income Tax Returns as a Disqualifying Condition
- Insufficient Evidence of Financial Stability and Responsibility as a Basis for Denial.