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ISCR Case 19-01731 — CASE

Case record

ISCR Case 19-01731

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date2/25/2020
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Noreen A. Lynch
Government Counsel: Patricia M. Lynch-Epps
Case Summary
The applicant in this case was a 38-year-old project analyst who had held a security clearance since 2008. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), alleging that the applicant failed to file federal tax returns for multiple years and had significant delinquent tax debts totaling over $38,000, among other financial obligations. The applicant admitted most of the allegations but denied specific debts, claiming he had filed his tax returns upon learning of the issues during the security clearance process.
The administrative judge found that the applicant acknowledged his financial difficulties but had not demonstrated a consistent effort to resolve them. He had initiated several installment agreements with the IRS, but failed to maintain payments, attributing his inaction to reliance on his wife for financial matters and a general lack of diligence. The judge noted that the applicant's financial issues were longstanding and that he had not sought financial counseling or provided evidence of a good-faith effort to address his debts.
Ultimately, the administrative judge ruled against the applicant, denying his eligibility for a security clearance. The judge concluded that the applicant's financial irresponsibility raised significant concerns about his reliability and trustworthiness, which are essential for safeguarding classified information. The judge emphasized that the applicant's past behavior and failure to demonstrate control over his financial situation did not support a favorable decision regarding national security interests.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 19-01731

deniedFeb 25, 2020· Hon. Noreen A. Lynch· hearing

Summary

A 38-year-old project analyst was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons detailed the applicant's failure to file federal tax returns for tax years 2010, 2013, 2014, 2016, and 2017. This resulted in delinquent federal tax debts totaling over $38,000 across those years, including specific amounts of $675 for 2010, $6,117 for 2013, $4,554 for 2014, $10,966 for 2015, $5,209 for 2016, and $6,353 for 2017.

Additionally, the applicant owed $1,056 in delinquent state taxes, had a charged-off account of $9,870, a delinquent medical account of $138, and a collection account of $290. Disqualifying conditions under Adjudicative Guidelines ¶ 19(a), ¶ 19(c), and ¶ 19(f) were raised.

Despite the applicant admitting to some allegations and claiming to have established payment plans, the administrative judge found that the financial issues remained unresolved. The applicant had entered into multiple IRS installment agreements but failed to maintain them or make required payments. The judge concluded that the applicant did not demonstrate a good-faith effort to resolve the debts or seek financial counseling, leading to the denial of eligibility for a security clearance.

Why the Applicant Was Denied

The applicant failed to file federal tax returns for multiple years and had significant delinquent tax debts.
The applicant entered into several installment agreements with the IRS but failed to make payments or maintain those agreements.
The applicant did not demonstrate a good-faith effort to resolve his financial issues or seek financial counseling.

Conditions Referenced

Disqualifying

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 as Required or Failure to Pay Annual Federal, State or Local Tax as Required

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

SOR issuedJun 21, 2019
Answer filed—
Hearing heldJan 14, 2020Applicant requested to hold the record open until January 28, 2020.
Decision dateFeb 25, 2020

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Failure to Demonstrate Good-faith Efforts to Resolve Tax Debts
Impact of Financial Irresponsibility on National Security Eligibility

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found multiple financial concerns under Guideline F, primarily related to the applicant's failure to file federal tax returns and significant delinquent tax debts. Despite some attempts to establish payment plans, the applicant's history of non-compliance and lack of financial counseling led to a decision against granting security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to file, as required, federal tax returns for tax years 2010, 2013, 2014, 2016, and 2017; that he is indebted to the federal government for delinquent taxes in the amount of $675 for tax year 2010; that he is indebted to the federal government for delinquent taxes in the amount of $6,117 for tax year 2013; that he is indebted to the federal government for delinquent taxes in the amount of $4,554 for tax year 2014; that he is indebted to the federal government for taxes in the amount of $10,966 for tax year 2015; that he is indebted to the federal government for delinquent taxes in the amount of $5,209 for tax year 2016; that he is indebted to the federal government for delinquent taxes in the amount of $6,353 for the tax year 2017; that he is indebted to the state for delinquent taxes in the amount of $1,056; that he has a charged-off account in the amount of $9,870; that that he has a delinquent medical account in the amount of $138; and that he is indebted for a collection account in the amount of $290.	Against Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—
1.b–1.k	10 sub-charges — specific text not stated in this decision (9 against, 1 for the applicant).	Mixed			—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.