Summary
A 42-year-old female applicant was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons detailed several allegations, including the failure to timely file federal and state income tax returns for 2017 and 2018, and the failure to timely pay 2014 federal income taxes, resulting in a delinquent tax debt.
Additionally, the applicant had numerous other delinquent debts dating back to at least 2016, including unresolved medical debts. While some consumer debts were paid and some student loan debts were settled, the applicant did not provide sufficient evidence of plans to resolve all outstanding debts, particularly medical and other student loan obligations.
The denial was based on the applicant's failure to timely file tax returns for 2017 and 2018, the presence of numerous unresolved delinquent debts, and the lack of a comprehensive plan to resolve all outstanding financial obligations. These issues raised concerns about the applicant's reliability and trustworthiness, leading to the denial of the security clearance.
Why the applicant was denied
- The applicant failed to timely file federal and state income tax returns for 2017 and 2018.
- Numerous delinquent debts remained unresolved, raising concerns about the applicant's reliability and trustworthiness.
- The applicant did not provide evidence of a plan to resolve all outstanding debts, particularly medical debts.
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(b)appliedConditions Largely Beyond the Person's ControlThe applicant attributed her financial problems to her divorce, unemployment, and medical issues.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made payments towards some debts after being confronted with them.
- AG ¶ 20(g)appliedArrangements with Tax AuthorityThe applicant established a payment plan with the IRS and has been making payments.
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 issuedDec 20, 2019
- Answer filedJan 21, 2020
- Hearing held—Decided on written record.
- Decision dateMay 6, 2020
Cite for
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Failure to File Tax Returns on Security Clearance Eligibility
- Consideration of Mitigating Conditions Related to Financial Difficulties