Summary
A 40-year-old former U.S. Air Force member was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The applicant admitted to owing $14,000 in overdue federal income taxes and had $76,265 in delinquent debts, including charged-off debts for a vehicle and due to unemployment. Other specific debts included a $472 telecommunications charge for unreturned equipment, a disputed $489 debt, and a $795 collection account for which the applicant claimed a final payment was made.
The judge found that the applicant failed to provide sufficient evidence of efforts to resolve these debts or demonstrate financial responsibility. Specifically, the applicant did not provide corroborating documentation for claimed payment arrangements or financial counseling.
Despite the application of mitigating conditions, the judge determined that the applicant's financial irresponsibility raised serious concerns about reliability and trustworthiness, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant admitted to owing $14,000 in overdue federal income taxes and had delinquent debts totaling $76,265.
- The applicant did not provide sufficient evidence of efforts to resolve the debts or demonstrate financial responsibility.
- The applicant failed to provide corroborating documentation for claimed payment arrangements or financial counseling.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- 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 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(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide sufficient evidence of good-faith efforts to repay 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 ArrangementsThe applicant did not provide documentation to support claims of payment arrangements with the IRS.
Procedural Posture
- SOR issuedOct 29, 2018
- Answer filedNov 28, 2018
- Hearing held—Case decided on written record.
- Decision dateMar 15, 2019
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Insufficient Evidence of Financial Responsibility
- Serious Questions About Reliability and Trustworthiness Due to Financial Issues.