Summary
A 42-year-old curriculum director was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The Statement of Reasons detailed 21 delinquent accounts totaling $19,102, along with federal tax liens from 2010 for $15,331 and 2011 for $1,570. Additionally, the applicant failed to timely file federal tax returns for 2010, 2011, and 2016.
The denial was based on the applicant's 21 delinquent accounts, which, including the tax liens, totaled over $36,000. The judge determined that the applicant did not provide sufficient evidence to demonstrate a good-faith effort to resolve these debts.
The financial issues were characterized as recent, ongoing, and unresolved. Consequently, the judge concluded that granting the applicant access to classified information was not consistent with national interest, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant had 21 delinquent accounts totaling over $36,000, including tax liens and failure to file tax returns.
- The applicant did not provide sufficient evidence to demonstrate a good-faith effort to resolve her debts.
- The applicant's financial issues were recent, ongoing, and unresolved.
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 Pay Annual Federal… 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 RecurThe applicant's financial issues are recent and ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some conditions were beyond her control, the applicant did not act responsibly to resolve her debts.
- AG ¶ 20(d)rejectedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not provide evidence of a good-faith effort to resolve her debts.
- AG ¶ 20(e)rejectedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documented proof to substantiate her disputes.
- AG ¶ 20(g)rejectedIndividual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant did not demonstrate compliance with tax obligations.
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedJul 3, 2018
- Answer filedAug 4, 2018
- Hearing held—Applicant requested a decision on the record without a hearing.
- Decision dateMar 6, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility