Summary
A 63-year-old military veteran was denied a security clearance due to financial considerations under Guideline F, specifically concerning his failure to file federal and state tax returns for multiple years. The applicant did not timely file federal income tax returns for 2013 through 2017, nor did he timely file State A and State B tax returns for the same five-year period.
While the applicant eventually paid his 2013 federal tax debt in June 2019 and entered an installment agreement with State A for his delinquent 2015 tax debt, these actions were deemed insufficient. The applicant also made arrangements with the appropriate tax authority to file or pay the amount owed and was in compliance with those arrangements.
The denial was based on the finding that the applicant's explanations for his failures were unpersuasive, and his efforts to resolve the tax issues only began after a government investigator interviewed him. This timing diminished the credibility of his claims of good faith, leading the judge to conclude that his actions did not demonstrate the reliability and good judgment required for access to classified information.
Why the Applicant Was Denied
- The applicant failed to timely file federal and state tax returns for multiple years, raising concerns about his reliability and judgment.
- His explanations for the failures were deemed unpersuasive and insufficient to mitigate the security concerns.
- The applicant only began addressing his tax issues after being interviewed by a government investigator, which diminished the credibility of his claims of good faith efforts.
Conditions Referenced
- AG ¶ 19(g)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(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.The applicant's actions were not taken until after he disclosed his tax issues to a government investigator.
- AG ¶ 20(g)appliedThe Individual 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
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established government rules and systems.”
Procedural Posture
- SOR issuedJun 10, 2019
- Answer filedJun 29, 2019
- Hearing held—Decided on the written record.
- Decision dateJan 8, 2020
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Mitigation of Financial Issues Due to Lack of Timely Action
- The Importance of Demonstrating Reliability and Good Judgment for Security Clearance Eligibility