Summary
A 40-year-old fire pump technician was denied a security clearance under Guideline F, Financial Considerations, due to significant unmitigated financial issues. The Statement of Reasons detailed several allegations, including the failure to timely file Federal and state income tax returns for 2013, 2014, and 2015.
Additionally, the applicant owed seven state tax liens totaling approximately $14,323, which were related to self-employment. Other outstanding debts included a mortgage deficiency balance of $12,668, a $14,157 deficiency balance after a car repossession, a delinquent account of $9,902 for business tools, and an unpaid utility account of $788. These issues raised disqualifying conditions under AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f).
While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(g) were considered, the judge determined they were insufficient. The denial was based on the applicant's failure to file tax returns for three consecutive years, significant outstanding debts totaling approximately $69,000, and the lack of a reasonable explanation for these financial problems or efforts to resolve them.
Why the Applicant Was Denied
- The applicant failed to file Federal and state income tax returns for three consecutive years.
- The applicant has significant outstanding debts, including state tax liens totaling approximately $14,323 and other debts amounting to around $55,000.
- The applicant did not demonstrate a reasonable explanation for his failure to file tax returns or resolve 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(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- 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)rejectedThe 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
“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 issuedJun 20, 2018
- Answer filedJul 3, 2018
- Hearing heldJan 15, 2019
- Decision dateApr 11, 2019
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Timely Filing Tax Returns for Security Clearance Considerations