Summary
A 30-year-old male applicant with prior military service was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from his failure to timely file federal income tax returns for the 2014, 2015, and 2016 tax years, and significant delinquent debts exceeding $19,000.
Specifically, the Statement of Reasons cited his failure to file the aforementioned tax returns. It also detailed several outstanding debts as of July 6, 2018, including charged-off balances of $17,381 and $892 to a credit union, and collection balances of $1,121 and $328 owed to the U.S. government. These issues raised disqualifying conditions related to financial irresponsibility.
While some mitigating conditions were considered, the judge ultimately determined that the applicant's financial irresponsibility, evidenced by the unfiled tax returns and substantial delinquent debts, including a defaulted car loan, raised sufficient concerns about his reliability and trustworthiness to warrant a denial of the security clearance.
Why the Applicant Was Denied
- The applicant failed to timely file federal income tax returns for tax years 2014 through 2016.
- The applicant had significant delinquent debts totaling over $19,000, including a defaulted car loan and other debts to a credit union and the government.
Conditions Referenced
- AG ¶ 19(f)appliedFailure 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 ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem From a Legitimate and Credible SourceThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made payments towards his debts and established repayment plans.
Key Rule Quoted
“The security concerns about financial considerations are articulated in AG ¶ 18: Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedJul 6, 2018
- Answer filedJul 17, 2018Requested a decision based on the written record.
- Hearing held—Decision based on written record.
- Decision dateMar 5, 2019
Cite For
- Failure to Timely File Federal Income Tax Returns Under Guideline F
- Significant Delinquent Debts as a Disqualifying Factor
- Importance of Financial Responsibility in Security Clearance Evaluations