Summary
A 39-year-old single mother and former Navy service member was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial obligations totaling approximately $22,300. The Statement of Reasons detailed several issues, including the applicant's admission of failing to timely file federal and state income tax returns for 2014 through 2017.
Additionally, the applicant admitted to owing $12,232 to a finance company for a repossessed automobile, on which she stated she was making payments. Other admitted debts included $2,228 to the Department of Veterans Affairs, $2,310, $2,470, and another $2,470 to a condominium association for judgments entered in 2015, 2016, and 2017 respectively, and $165.82 to a city treasurer’s office for a 2016 judgment. For these latter debts, no information was provided regarding payment or plans to pay. The applicant denied owing $365 for a mobile phone bill, stating it was paid off.
The denial was based on the applicant's failure to file tax returns for four years, unresolved debts totaling approximately $9,700 with no evidence of payment plans, and insufficient evidence of financial stability or character references. Despite some debts being resolved, the applicant did not demonstrate a clear plan to address outstanding obligations, leading to concerns about reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant failed to file Federal or state income tax returns for tax years 2014 through 2017.
- The applicant has unresolved debts totaling approximately $9,700, with no evidence of plans to pay them.
- The applicant did not provide sufficient evidence of financial stability or character references.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- 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
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial issues are ongoing and unresolved.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not demonstrate that her financial problems were beyond her control.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not show evidence of efforts to repay debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant admitted to the debts without disputing their legitimacy.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax AuthorityThe applicant did not provide evidence of arrangements to file or pay taxes.
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedJan 9, 2019
- Answer filedMar 20, 2019
- Hearing held—Case decided on the written record.
- Decision dateFeb 13, 2020
Cite For
- Insufficient Mitigation of Financial Issues Under Guideline F
- Ongoing Financial Obligations as a Disqualifying Factor
- Failure to Provide Evidence of Financial Stability or Plans to Resolve Debts