Summary
A 61-year-old laboratory technician was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The applicant failed to timely file federal and state income tax returns for tax years 2013 and 2016. Additionally, he had six delinquent medical debts totaling over $65,000.
During the review, the applicant acknowledged these issues but did not provide sufficient documentation to mitigate the concerns. Specifically, he did not provide receipts for any payments made toward the medical debts. He also did not clarify whether the IRS provides substitute tax return information to state tax authorities or if he had received any bills from the state for delinquent taxes. One of the medical debts stemmed from helicopter transportation to a hospital, which his insurance did not cover, deeming it not medically necessary or lacking prior approval.
Despite these financial challenges, the applicant's credit score was noted as "ok." However, the judge concluded that the applicant had not established sufficient mitigation of the financial security concerns, leading to the denial of the security clearance as inconsistent with national interest.
Why the applicant was denied
- Applicant failed to timely file federal and state income tax returns for tax years 2013 and 2016.
- Applicant has six delinquent medical debts totaling over $65,000.
- Applicant did not provide sufficient evidence of financial responsibility or mitigation of concerns.
Conditions referenced
- 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(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 JudgmentThe applicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not provide sufficient evidence to demonstrate that he acted responsibly under the circumstances.
- 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 documentation of payments or efforts to resolve debts.
Key rule quoted
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems.”
Procedural posture
- SOR issuedMay 17, 2019
- Answer filedAug 20, 2019
- Hearing heldNov 15, 2019
- Decision dateDec 19, 2019
Cite for
- Denial of Security Clearance Due to Failure to File Tax Returns Under Guideline F
- Financial Irresponsibility as a Disqualifying Factor for Security Clearance
- Insufficient Evidence of Mitigation in Financial Considerations Cases