Summary
A 63-year-old senior systems engineer was granted a security clearance despite allegations under Guideline F, Financial Considerations. The Statement of Reasons detailed a history of financial issues, including failure to file federal income tax returns and pay federal income taxes from 2004 to 2014, and state income taxes from 2013 to 2015.
Multiple federal tax liens were entered against the applicant, totaling approximately $17,632 in 2016, and approximately $14,467 and $66,075 in 2012. A state tax lien for approximately $11,437 was entered in 2015. Additionally, the applicant had multiple charged-off and collection accounts, each totaling approximately $3,458.
The administrative judge determined that the applicant had made a good-faith effort to repay overdue creditors and resolve debts. The applicant demonstrated a reliable track record of tax plan payments and had not incurred additional tax delinquencies in the past five years. Furthermore, the applicant's current spouse actively supports and ensures the timely filing and payment of taxes, leading to the decision to grant the security clearance.
Why the Applicant Prevailed
- The applicant initiated and adhered to a good-faith effort to repay overdue creditors and resolve debts.
- The applicant has shown a reliable track record of tax plan payments and has not incurred additional tax delinquencies in the past five years.
- The applicant's current spouse actively supports and ensures timely filing and payment of taxes.
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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source, Such as a Non-profit Credit Counseling Service, and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- 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
“Security requirements include consideration of a person’s judgment, reliability, and a sense of his or her legal obligations.”
Procedural Posture
- SOR issuedJun 21, 2019
- Answer filedSep 27, 2019
- Hearing heldOct 22, 2020originally scheduled for 09/11/2020, canceled due to pandemic-related issues
- Decision dateMar 17, 2021
Cite For
- Mitigating Conditions for Financial Considerations Under Guideline F
- Importance of Demonstrating a Good-faith Effort to Resolve Financial Issues
- The Role of Spouse Support in Addressing Financial Obligations