Summary
A 60-year-old engineer and veteran 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 file and/or pay federal income taxes from Tax Years (TYs) 2008-2016 and state income taxes from TYs 2008-2015. Additionally, the applicant had a Chapter 13 bankruptcy filed in June 2013, which was converted to a Chapter 7 bankruptcy and discharged in November 2015. Other financial concerns included a charged-off credit card account of approximately $710 and a student loan account in collection totaling about $10,792.
Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(d). While mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(g) were applied, they were ultimately insufficient to overcome the concerns.
The denial was based on the applicant's failure to mitigate financial concerns, particularly the unpaid taxes and bankruptcy history. The judge determined that the applicant's financial irresponsibility raised significant doubts about his reliability and trustworthiness, emphasizing the importance of fulfilling obligations, especially tax responsibilities. The applicant did not present a clear plan to resolve his outstanding tax debts or other financial obligations.
Why the applicant was denied
- The applicant failed to mitigate financial concerns, including unpaid taxes and a history of bankruptcy.
- The applicant's financial irresponsibility raised doubts about his reliability and trustworthiness.
- The applicant did not demonstrate a clear plan to resolve his tax debts or financial obligations.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(d)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's PTSD contributed to his financial issues, he did not act responsibly to resolve them.
- AG ¶ 20(c)rejectedReceived Financial CounselingThere were no clear indications that the counseling helped resolve his tax issues.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not enter into a payment plan with the IRS despite having the means to do so.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant did not make arrangements with the IRS to pay his past-due federal taxes.
Key rule quoted
“[N]o one has a ‘right’ to a security clearance.”
Procedural posture
- SOR issuedMay 9, 2019
- Answer filed—Applicant requested a decision based on the administrative record.
- Hearing heldAug 11, 2021
- Decision dateOct 8, 2021
Cite for
- Failure to Mitigate Financial Concerns Under Guideline F
- Importance of Fulfilling Tax Obligations for Security Clearance Eligibility
- Impact of Financial Irresponsibility on Reliability and Trustworthiness