Summary
A 60-year-old defense contractor and former military officer was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed primarily from unresolved financial issues, specifically a history of failing to file tax returns and an unaddressed state tax lien.
The Statement of Reasons detailed several allegations, including the applicant's failure to file state tax returns for 2008-2009 and untimely filing of federal and state returns for 2010-2012 and 2019. A state tax lien of approximately $3,382 was filed against him, which he did not resolve until 2020, after the Statement of Reasons was issued. Additionally, the applicant was alleged to have deliberately failed to disclose a federal tax lien of $6,176 on his July 2016 security clearance application, failed to disclose wage garnishment, and provided false or misleading information on a February 2008 application.
While personal conduct allegations were not substantiated, the judge found insufficient evidence of responsible action regarding tax obligations. The applicant failed to timely file federal and state tax returns for multiple years and did not address the state tax lien until after the Statement of Reasons was issued. This demonstrated a lack of trustworthiness and reliability, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant failed to timely file federal and state tax returns for multiple years, including 2008-2012 and 2019.
- A state tax lien was filed against the applicant in 2008, which he did not address until 2020, after the SOR was issued.
- The applicant did not provide sufficient evidence of responsible action regarding his tax obligations.
Conditions Referenced
- 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(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control.While the applicant faced personal difficulties, he did not take responsible action to address his tax obligations.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements.The applicant failed to demonstrate compliance with tax obligations.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJan 30, 2020
- Answer filedMar 9, 2020
- Hearing heldJan 6, 2021Delayed due to COVID-19 pandemic.
- Decision dateFeb 24, 2021
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Evidence of Responsible Action Regarding Tax Obligations
- Lack of Trustworthiness and Reliability Due to Financial Conduct Issues.