Summary
The applicant, a 41-year-old defense contractor employee, was denied a security clearance under Guideline F due to unresolved financial issues, including failure to file tax returns for multiple years and numerous delinquent accounts totaling over $164,000. Despite acknowledging his financial problems, he failed to take significant steps to address them, leading to concerns about his reliability and judgment. The administrative judge concluded that the applicant did not mitigate the security concerns, resulting in a denial of eligibility for a security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to timely file his federal income tax returns for the tax years 2016, 2017, and 2018 (1.a). Applicant has a home mortgage that went into foreclosure with a past-due balance of $23,307 (1.b). Applicant has a credit-card account with an unpaid balance of $2,843 that was placed for collection and charged off (1.c). Applicant has a credit-card account with an unpaid balance of $2,349 that was placed for collection and charged off (1.d). Applicant has a medical account with an unpaid balance of $1,151 that was placed for collection (1.e). Applicant has a gas utility account with an unpaid balance of $679 that was placed for collection (1.f). Applicant has a credit-card account with an unpaid balance of $10,158 that was placed for collection (1.g). Applicant has an unspecified type of utility account with an unpaid balance of $255 that was placed for collection (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The decision turned on the following: The applicant failed to timely file federal income tax returns for 2016, 2017, and 2018, which were not filed until August 2020; The applicant had seven delinquent accounts totaling approximately $164,906, which he did not address or resolve; The applicant did not demonstrate a good-faith effort to repay overdue creditors or resolve debts.
Why the Applicant Was Denied
- The applicant failed to timely file federal income tax returns for 2016, 2017, and 2018, which were not filed until August 2020.
- The applicant had seven delinquent accounts totaling approximately $164,906, which he did not address or resolve.
- The applicant did not demonstrate a good-faith effort to repay overdue creditors or resolve debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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 Tax Returns
Key Rule Quoted
“Eligibility for a security clearance is denied.”
Procedural Posture
- SOR issuedMar 9, 2021
- Answer filedJul 20, 2021Applicant elected to have his case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateDec 7, 2021
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Failure to Address Delinquent Accounts as a Disqualifying Condition
- Lack of Good-faith Effort to Resolve Financial Issues as a Basis for Denial of Clearance