Summary
A 59-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved financial issues. The Statement of Reasons detailed several allegations, including delinquent federal taxes totaling $4,237 for tax years 2015, 2016, and 2017, and delinquent state taxes of $790. Additionally, the applicant failed to timely file federal income tax returns for 2015, 2016, and 2017, and state income tax returns for 2015, 2016, 2017, and 2018.
The applicant also had 12 delinquent accounts placed for collection, totaling approximately $26,468. These included an automobile loan with an unpaid balance of $5,546, an account with an unpaid balance of $2,337 that was charged off, a charge account for $32, and another account for $11,770. Other debts included a time-share account for approximately $514, two cellular-telephone accounts for $404 and $296 respectively, a credit-card account for approximately $391, and two medical accounts for $81 and $70.
Despite acknowledging some allegations, the applicant did not provide sufficient evidence of efforts to mitigate her financial problems, such as repayment plans or verifiable resolutions for any of the delinquent accounts. Consequently, the adjudicator concluded that granting a security clearance was not consistent with national interest, leading to the denial.
Why the Applicant Was Denied
- The applicant failed to timely file federal and state income tax returns for multiple years.
- The applicant had 12 delinquent accounts totaling approximately $26,468, none of which were verifiably resolved.
- The applicant did not provide documentary evidence of repayment plans or efforts to address her debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- 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 Taxes
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial difficulties were attributed to low-paying jobs and unemployment, but evidence showed issues predated this period.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to provide evidence of any significant actions taken to resolve debts.
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedOct 29, 2019
- Answer filedNov 29, 2019Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateJun 3, 2020
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Financial Issues on Security Clearance Eligibility
- Importance of Providing Documentary Evidence in Financial Cases