Summary
The applicant, a 49-year-old audio-visual technician, faced security concerns under Guideline F (Financial Considerations) due to significant delinquent debts totaling approximately $286,943, including federal and state tax liens, mortgage loans, and consumer debts. Despite some admissions and attempts to address his financial issues, the judge found that the applicant did not sufficiently mitigate the security concerns, leading to a denial of eligibility for access to classified information.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: state tax lien entered in 2016 for $4,037 (1.a). federal tax lien entered in 2015 for $18,437 (1.b). federal tax lien entered in 2011 for $38,776 (1.c). delinquent mortgage loan charged off for $57,322 (1.d). consumer debt placed for collection of $3,732 and credit-card account placed for collection of $3,724 (1.e). delinquent mortgage loan past due for $99,464; in foreclosure with balance of $489,290 (1.f). delinquent federal taxes of $12,698 for tax year 2010 (1.g). delinquent federal taxes of $25,175 for tax year 2011 (1.h). delinquent federal taxes of $18,662 for tax year 2014 and $33,791 for tax year 2015 (1.i). failure to timely file federal income tax return for tax years 2016 and 2017 (1.j). delinquent federal taxes of $10,051 for tax year 2007; $1,661 for tax year 2008; and $16,624 for tax year 2009 (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(g). The decision turned on the following: The applicant had significant delinquent debts totaling approximately $286,943, including multiple tax liens and mortgage loans; The applicant failed to provide sufficient documentation to support claims of financial responsibility or resolution of debts; The applicant's financial issues were not caused by circumstances beyond his control, and he did not demonstrate a willingness to address his federal tax debts adequately.
Why the Applicant Was Denied
- The applicant had significant delinquent debts totaling approximately $286,943, including multiple tax liens and mortgage loans.
- The applicant failed to provide sufficient documentation to support claims of financial responsibility or resolution of debts.
- The applicant's financial issues were not caused by circumstances beyond his control, and he did not demonstrate a willingness to address his federal tax debts adequately.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Financial Counseling From a Legitimate and Credible SourceThe applicant obtained assistance from a tax professional, but issues were not resolved.
- AG ¶ 20(d)appliedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant established a payment agreement for state tax debt.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 20(g)rejectedArrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJul 15, 2019
- Answer filedNov 25, 2019
- Hearing held—Decision made on the written record without a hearing.
- Decision dateMar 24, 2020
Cite For
- Denial of Security Clearance Due to Significant Financial Delinquency Under Guideline F
- Insufficient Evidence of Financial Responsibility and Resolution of Debts
- Failure to Demonstrate Mitigating Circumstances for Financial Issues