Summary
The applicant, a 55-year-old test engineer with a history of financial difficulties, faced security concerns under Guideline F (Financial Considerations) due to delinquent debts and failures to file taxes. Despite some efforts to address his tax obligations, the judge found that the applicant did not mitigate the security concerns, leading to a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: delinquent home-mortgage loan for $572,585, foreclosed in 2018 (1.a). delinquent credit-card account charged off for $15,066 (1.b). delinquent unsecured loan charged off for $3,554 (1.c). line of credit charged off for $7,846 (1.d). Chapter 13 bankruptcy petition that was dismissed (1.e). failures to timely file federal and state income tax returns for tax years 2011 through 2016 (1.f). federal tax debt of $90,000 for tax years 2011-2016 (1.g). state tax debt of $12,000 for tax years 2011-2016 (1.h).
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(b), AG ¶ 20(g). The decision turned on the following: The applicant had numerous recent delinquent debts and failed to file federal and state income tax returns timely; The applicant's financial problems were not under control, and he did not demonstrate a credible plan to resolve his debts; The applicant's long-term procrastination regarding tax filings indicated a lack of good judgment and reliability.
Why the Applicant Was Denied
- The applicant had numerous recent delinquent debts and failed to file federal and state income tax returns timely.
- The applicant's financial problems were not under control, and he did not demonstrate a credible plan to resolve his debts.
- The applicant's long-term procrastination regarding tax filings indicated a lack of good judgment and reliability.
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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(g)appliedIndividual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedApr 4, 2019
- Answer filedMay 7, 2019Returned for notarization on 2019-08-01, notarized and returned on 2019-08-18.
- Hearing heldNov 14, 2019
- Decision dateJan 13, 2020
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Failure to Mitigate Financial Concerns Despite Some Efforts
- Importance of Timely Tax Filings in Security Clearance Evaluations