Summary
A 61-year-old retired Army Major was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons cited the applicant's failure to timely resolve federal and state income tax liens, as well as an educational debt. Disqualifying conditions under AG ¶ 19(a), (b), (c), and (f) were raised.
While mitigating conditions under AG ¶ 20(c) and (g) were considered, the judge found insufficient evidence of mitigation. Despite some payments made towards tax debts, the applicant did not demonstrate a timely resolution of the outstanding financial obligations.
Ultimately, the denial was based on the applicant's failure to resolve these debts and the determination that his financial management did not reflect the reliability and judgment necessary for access to classified information.
Why the Applicant Was Denied
- The applicant failed to timely resolve federal and state income tax liens and an educational debt.
- The applicant did not demonstrate sufficient mitigation of the financial concerns.
- The applicant's actions did not reflect the reliability and judgment required for access to classified information.
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(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem From a Legitimate and Credible SourceThe applicant did not participate in credit or financial counseling.
- 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 ArrangementsThe applicant submitted evidence of compliance with a repayment plan with the IRS for his 2006 tax lien.
Key Rule Quoted
“Someone who fails repeatedly to fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of those granted access to classified information.”
Procedural Posture
- SOR issuedMar 6, 2019
- Answer filedMar 29, 2019
- Hearing heldAug 14, 2019
- Decision dateOct 28, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Mitigation of Financial Concerns Despite Evidence of Partial Payments
- Importance of Timely Resolution of Tax Debts in Security Clearance Evaluations