Summary
A 48-year-old employee of a DoD contractor was denied a security clearance under Guideline F, Financial Considerations, primarily due to unresolved tax issues. The Statement of Reasons alleged that the applicant failed to file federal income tax returns for 2016 and state income tax returns for 2014 and 2016. Additionally, the applicant filed federal income tax returns for 2014, 2015, and 2017 late, though no taxes were owed for those years.
The administrative judge identified Disqualifying Condition AG ¶ 19(f) related to a history of not meeting financial obligations. While Mitigating Conditions AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(g) were considered, they were insufficient to overcome the security concerns.
The denial was based on the applicant's failure to file the specified federal and state tax returns, which remained unfiled at the time of the decision. This demonstrated a lack of good judgment and reliability, leading the judge to conclude that granting a security clearance was not consistent with national security interests.
Why the Applicant Was Denied
- The applicant failed to file federal income tax returns for 2016 and state income tax returns for 2014 and 2016, raising security concerns under Guideline F.
- The applicant did not provide evidence of resolving his outstanding tax issues, which remained unfiled at the time of the decision.
- The applicant's financial irresponsibility indicated a lack of good judgment and reliability necessary for access to classified information.
Conditions Referenced
- 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(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control.The applicant's financial situation was adversely affected by his period of unemployment from late 2013 to September 2015.
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.The applicant filed his 2014, 2015, and 2017 federal income tax returns, albeit late.
- 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.The applicant filed several federal tax returns but failed to provide proof of filing for 2016 and state returns.
Key Rule Quoted
“Any doubt concerning personnel being considered for access for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJan 9, 2019
- Answer filedApr 2, 2019Requested a decision based on the administrative record.
- Hearing held—
- Decision dateJul 15, 2019
Cite For
- Failure to File Federal and State Income Tax Returns Under Guideline F
- Impact of Unresolved Financial Issues on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Security Clearance Decisions