Loading case…

Summary

The applicant, a 57-year-old male with a history of failing to file tax returns and pay debts, faced security clearance denial under Guidelines E and F. The judge found significant security concerns due to the applicant's long-standing non-compliance with tax obligations and failure to disclose relevant financial information on his security clearance application, concluding that he did not demonstrate the reliability and trustworthiness required for access to classified information.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately denied and failed to disclose his failure to file his tax returns and his tax liens on his August 2017 security clearance application (SCA) (2.a). The $28,865 second mortgage debt has been delinquent and charged off since March 2014. Applicant has no intention to resolve it until he sells the house at a future date (1.a). This $947 credit card debt became delinquent in August 2016. Applicant said he settled it for $521 and paid it in March 2019 (1.b). This charged-off $453 credit card debt became delinquent in 2016. Applicant disputes the charge, but provided no evidence substantiating a basis for the dispute (1.c). The $280 collection account for an unpaid phone bill became delinquent in 2017. Applicant said he disputes this charge and has no intention of paying it, but provided no substantiation (1.d). Applicant has not filed his Federal and state income tax returns since 1992. He stated that he declined to file them because he does not consent to being taxed on his labor, such as a payroll tax; hence, he believes he is not legally required to file the returns (1.e). Applicant has not paid the $38,215 Federal income tax lien entered against him in October 2018. Applicant does not intend to pay the debt because he does not believe he has a legal obligation to pay taxes on his labor, unless he consents to the tax (1.f). Applicant has not paid the $61,297 Federal income tax lien entered against him in October 2005. He does not intend to pay the debt because he does not believe he has a legal obligation to pay taxes on his labor, unless he consents to the tax (1.g). Applicant has not paid the $351,636 Federal income tax lien entered against him in April 2004. He does not intend to pay the debt because he does not believe he has a legal obligation to pay taxes on his labor, unless he consents to the tax (1.h).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f), AG ¶ 16(a). The decision turned on the following: The applicant has a long history of failing to file Federal and state income tax returns since 1992; He failed to pay significant Federal income tax liens and other debts, demonstrating a lack of financial responsibility; The applicant deliberately omitted required financial information from his security clearance application.

Why the Applicant Was Denied

• The applicant has a long history of failing to file Federal and state income tax returns since 1992.
• He failed to pay significant Federal income tax liens and other debts, demonstrating a lack of financial responsibility.
• The applicant deliberately omitted required financial information from his security clearance application.

Conditions Referenced

Key Rule Quoted

“Failure to file tax returns suggests that an applicant has a problem with complying with well-established government rules and systems.”

Procedural Posture

• SOR issuedApr 1, 2019
• Answer filedApr 20, 2019
• Hearing heldAug 15, 2019
• Decision dateSep 11, 2019

Cite For

• Denial of Security Clearance Due to Failure to File Tax Returns Under Guideline F
• Significant Security Concerns Arising From Financial Irresponsibility
• Deliberate Omission of Financial Information on Security Clearance Application Under Guideline E