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ISCR Case 19-03098 — CASE

Case record

ISCR Case 19-03098

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date11/18/2021
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Related decisionSee the appeal decision (Case 19-03098) →
Participants
Applicant Representation: Pro Se
Judge: Robert Robinson Gales
Government Counsel: Nicholas T. Temple
Case Summary
The applicant in this case was a 68-year-old employee of a defense contractor, seeking a security clearance after previously holding various security clearances during his military service. The Department of Defense (DOD) issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), primarily due to the applicant's history of failing to timely file state and federal income tax returns and the resulting tax liabilities, which included significant penalties and levies.
During the proceedings, the applicant admitted to some of the allegations regarding his financial issues but denied others, particularly those related to the untimely filing of tax returns for certain years, due to a lack of supporting evidence from the government. He attributed his financial difficulties to personal issues, including marital problems and procrastination. The applicant did demonstrate some mitigation efforts, such as obtaining tax consulting services and entering into installment agreements with the IRS and state tax authorities to address his tax debts.
The administrative judge ruled against the applicant, concluding that he failed to sufficiently mitigate the security concerns related to his financial situation. The judge noted that while the applicant had made some efforts to resolve his tax issues, the overall pattern of financial irresponsibility and the lack of substantial evidence to support his claims of timely filing for certain years led to the denial of his security clearance eligibility.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
- Guideline FFinancial Considerations · Against Applicant
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Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
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Case Headnote

ISCR Case No. 19-03098

deniedNov 18, 2021· Hon. Robert Robinson Gales· hearing

Summary

A 68-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of unresolved financial issues. The Statement of Reasons detailed the applicant's failure to timely file federal and state income tax returns for multiple years, specifically from 2006 through 2011, and again from 2012 through 2016.

Additionally, the applicant was delinquent in paying approximately $698,000 in federal income tax and about $260,000 in state income tax, both amounts including late payment penalties and interest. While the applicant did file the 2012-2016 returns in August 2019, this action occurred only after being prompted by the security clearance process.

The judge concluded that the applicant's financial issues demonstrated a long history of irresponsibility and procrastination. This pattern undermined his reliability and trustworthiness, leading to the determination that granting a security clearance was not consistent with national interest.

Why the Applicant Was Denied

The applicant failed to timely file federal and state income tax returns for the years 2012 through 2016, only filing them in August 2019 after being prompted by the security clearance process.
The applicant was delinquent in paying approximately $698,000 in federal income tax and $260,000 in state income tax, including penalties and interest.
The applicant's financial issues were characterized by a long history of irresponsibility and procrastination, undermining his reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(b)appliedUnwillingness to Satisfy Debts
AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Tax Returns

Mitigating

AG ¶ 20(g)appliedMade Arrangements with Tax Authority

Key Rule Quoted

“"Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems."”
— ISCR Case No. 01-05340 at 3 (App. Bd. Dec. 20, 2002)

Procedural Posture

SOR issuedJan 10, 2020
Answer filedJan 22, 2020
Hearing heldMay 12, 2021via video teleconference
Decision dateNov 18, 2021

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Impact of Failure to File Tax Returns on Security Clearance Eligibility
Consideration of Financial Irresponsibility in Security Clearance Determinations

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: HearingDecided: denied

The judge found significant financial concerns under Guideline F, primarily due to the applicant's failure to timely file income tax returns and substantial unpaid tax debts. Ultimately, the judge ruled against the applicant on most allegations, concluding that the applicant failed to mitigate the financial issues presented.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to timely file his federal and state income tax returns for the tax years 2006 through 2011.	For Applicant	Tax Filing Failure	Admitted	—	—	—
1.a	Applicant failed to timely file his federal and state income tax returns for the tax years 2012 through 2016.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.b	Applicant was delinquent in paying his federal income tax, amounting to approximately $698,000, including late payment penalty and interest. $698,000	Against Applicant	Tax Unpaid	Admitted	—	—	—
1.c	Applicant was delinquent in paying his state income tax, amounting to approximately $260,000, including late payment penalty and interest. $260,000	Against Applicant	Tax Unpaid	Admitted	—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.