Summary
A 51-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons alleged the applicant failed to file federal and state income tax returns for the tax years 2011, 2012, 2013, 2014, and 2015. Additionally, the applicant had 12 delinquent accounts, comprising one credit card and 11 medical accounts, totaling approximately $17,332. One medical account was later determined to be erroneously alleged.
Disqualifying conditions raised included AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f), while mitigating condition AG ¶ 20(b) was applied. Despite admitting to the allegations, the applicant did not provide sufficient documentation to demonstrate financial stability or the resolution of these debts.
The denial was based on the applicant's failure to file tax returns for multiple years and the presence of numerous unresolved delinquent accounts totaling approximately $17,332. The applicant's assertions of financial stability were unverified and lacked supporting evidence, leading to the conclusion that the necessary standards for trustworthiness and reliability were not met.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for several years.
- The applicant had numerous delinquent accounts totaling approximately $17,332, which he did not resolve or provide documentation for.
- The applicant's claims of financial stability were unverified and unsupported by evidence.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were attributed to personal circumstances but lacked sufficient evidence of responsible actions taken.
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 31, 2019
- Answer filedAug 15, 2019Initial Answer; Supplemental Answer on 2019-09-27
- Hearing held—Applicant elected to have the case decided on the written record.
- Decision dateDec 12, 2019
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Importance of Providing Documentation to Support Claims of Financial Stability
- Impact of Unfiled Tax Returns on Security Clearance Eligibility